Question: The (assumed constant) hazard rate (default intensity) for the reference entity of a credit derivative is 7%. What is the conditional probability of default in

The (assumed constant) hazard rate (default intensity) for the reference entity

The (assumed constant) hazard rate (default intensity) for the reference entity of a credit derivative is 7%. What is the conditional probability of default in the third year? 4.76% 5.88% 6.30% 6.76% 969

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