Question: Q2 (2 points). The following table provides cumulative average default rates from Moody's for companies rated Baa: 1-year 2-year 3-year 4-year 5-year 6-year 7-year Baa

Q2 (2 points). The following table provides cumulative average default rates

Q2 (2 points). The following table provides cumulative average default rates from Moody's for companies rated Baa: 1-year 2-year 3-year 4-year 5-year 6-year 7-year Baa 0.177 0.495 0.894 1.369 1.877 2.927 4.74 Determine the unconditional and conditional probabilities of default in the seventh year: Q2 (2 points). The following table provides cumulative average default rates from Moody's for companies rated Baa: 1-year 2-year 3-year 4-year 5-year 6-year 7-year Baa 0.177 0.495 0.894 1.369 1.877 2.927 4.74 Determine the unconditional and conditional probabilities of default in the seventh year

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