Question: From Table 1 1 A - 1 , what is the probability of a loan upgrade? A loan downgrade? a . What is the impact

From Table 11A-1, what is the probability of a loan upgrade? A loan downgrade?
a. What is the impact of a rating upgrade or downgrade?
b. How is the discount rate determined after a credit event has occurred?
c. Why does the probability distribution of possible loan values have a negative skew?
d. How do the capital requirements of the CreditMetrics approach differ from those of the BIS and the Federal Reserve System?
From Table 11A-1, what is the probability of a loan upgrade?

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