Question: QUESTION 6 Marginal default probability refers to the probability that a borrower will default over a specified multiyear period. marginal increase in the default probability

QUESTION 6

Marginal default probability refers to the

probability that a borrower will default over a specified multiyear period.

marginal increase in the default probability due to a change in credit premium.

historic default rate experience of a bond or loan.

expected maximum change in the loan rate due to a change in the credit premium.

probability that a borrower will default in any given year.

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