Verify that the numbers in the second column of Table 17.5 are consistent with the numbers in
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Verify that the numbers in the second column of Table 17.5 are consistent with the numbers in the second column of Table 17.4.
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Table 17.4 Cumulative Default Probabilities Compared with Credit Spreads Rating AA AA A BBB BB B CCC/C Cumulative 7-Year Default Probabilities (%), 1981- 2020 0.51 0.49 0.76 2.27 8.89 20.99 50.75 7-Year Credit Spread (bp) 1996-2007 35.74 43.67 68.68 127.53 280.28 481.04 1,103.70
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