Question: 8 0 ) What does cumulative default probability refer to ? A ) Theprobabilitythataborrowerwilldefaultoveraspecifiedmultiyearperiod. B ) Expectedmaximumchangeintheloanrateduetoachangeintheriskfactorontheloan. C ) Thehistoricdefaultrateexperienceofabondorloan. D ) Expectedmaximumchangeintheloanrateduetoachangeinthecreditpremium. E )

80) What does cumulative default probability refer to? A) Theprobabilitythataborrowerwilldefaultoveraspecifiedmultiyearperiod. B) Expectedmaximumchangeintheloanrateduetoachangeintheriskfactorontheloan. C) Thehistoricdefaultrateexperienceofabondorloan. D) Expectedmaximumchangeintheloanrateduetoachangeinthecreditpremium. E) Theprobabilitythataborrowerwilldefaultinanygivenyear.

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