Moody’s has calculated that for the 1970-2013 period, a Ba rated issuer has cumulative default rates (%) of 1.110, 3.071 and 5.371 in years 1, 2 and 3. Calculate the average hazard rate during the third year for such an issuer. Show how you derived your answer.                     

Answer rating: 100% (QA)

To calculate the average hazard rate during the third year for a Ba rated issuer we can use the cumu... View the full answer