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NEW QUESTION: 1

A. Option B
B. Option C
C. Option A
D. Option D
Answer: C,D

NEW QUESTION: 2
If the annual default hazard rate for a borrower is 10%, what is the probability that there is no default at the end of 5 years?
A. 39.35%
B. 60.65%
C. 50.00%
D. 59.05%
Answer: B
Explanation:
Explanation
A default hazard rate is the rate of default in a continuous time setting. This question is asking for probability of survival at the end of 5 years. The formula to calculate the probability of survival at the end of t years where the default hazard rate is is e