Question: 12. Using the hypothetical rating transition matrix shown in Exhibit 4 of the chapter, answer the following questions: a. What is the probability that a

12. Using the hypothetical rating transition matrix shown in Exhibit 4

12. Using the hypothetical rating transition matrix shown in Exhibit 4 of the chapter, answer the following questions: a. What is the probability that a bond rated BBB will be downgraded? b. What is the probability that a bond rated BBB will go into default? c. What is the probability that a bond rated BBB will be upgraded

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