
Financial Risk Manager Part 2
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In the context of credit risk modeling, consider a company subjected to a constant hazard rate of 0.12 per year. Calculate the probability that the company will stay in business throughout the first year, but default at some point during the second year.
In the context of credit risk modeling, consider a company subjected to a constant hazard rate of 0.12 per year. Calculate the probability that the company will stay in business throughout the first year, but default at some point during the second year.
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