Marginal Default Probability Refers to the

question 68

Multiple Choice

Marginal default probability refers to the

• A)probability that a borrower will default over a specified multi-year period.
• B)marginal increase in the default probability due to a change in credit premium.
• C)historic default rate experience of a bond or loan.
• D)expected maximum change in the loan rate due to a change in the credit premium.
• E)probability that a borrower will default in any given year.

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