Question: The Hazard rate for a reference entity is 16.98% each year. What is the unconditional probability of default in year 5? a. 0.169800 b. 0.080662

The Hazard rate for a reference entity is 16.98% each year. What is the unconditional probability of default in year 5?

		a. 0.169800
		b. 0.080662
		c. 0.140968
		d. 0.689232
		e. 0.394379

The Hazard rate for a reference entity is 16.98% each year. Assume payments are made annually in arrears. Assume that default, if it happens, always happens exactly halfway through a year. Assume that the expected recovery rate is 21%. Assume that the Treasury-Spot curve is flat at 9% with continuous compounding. Assume Notional Principal = $1. What is the present value of ALL expected accruals on this 5-year CDS in terms of s?

		a. 0.084900
		b. 0.060484
		c. 0.048516
		d. 0.035453
		e. 0.0251826

The Hazard rate for a reference entity is 16.98% each year. Assume payments are made annually in arrears. Assume that the Treasury-Spot curve is flat at 9% with continuous compounding. Assume Notional Principal = $1. Assume the spread on this 5-year CDS is s. What is the present value of ALL expected premium payments on this 5-year CDS in terms of s?

		a. 2.354139s
		b. 3.214515s
		c. 3.002453s
		d. 2.065455s
		e. 1.965845s

The Hazard rate for a reference entity is 16.98% each year. Assume payments are made annually in arrears. Assume that default, if it happens, always happens exactly halfway through a year. Assume that the expected recovery rate is 21%. Assume that the Treasury-Spot curve is flat at 9% with continuous compounding. Assume Notional Principal = $1. In case of a credit event in 3.5 years, what is the present value of the expected accrual in terms of s?

		a. 0.084900s
		b. 0.060484s
		c. 0.048516s
		d. 0.035453s
		e. 0.040331s

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