Question: umulative default probability refers to probability that a borrower will default in any given year. expected maximum change in the loan rate due to a
umulative default probability refers to
probability that a borrower will default in any given year.
expected maximum change in the loan rate due to a change in the risk
factor on the loan.
historic default rate experience of a bond or loan.
probability that a borrower will default over a specified multiyear
period.
expected maximum change in the loan rate due to a change in the
credit premium.
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