If a Firm Has a Distance-To-Default of 2,and We Assume

question 2

Multiple Choice

If a firm has a distance-to-default of 2,and we assume a normal distribution,then the probability of a firm defaulting is

• A)1.1%
• B)1.5%
• C)2.1%
• D)2.3%

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Definitions:

Card Game

A game played using a deck or pack of playing cards as the primary device with which the game is played.

Autonomous

Referring to the capability of functioning independently or having self-governance.

Immanent

Existing or operating within; inherent within the physical world or the universe.

Immanent Justice

The belief, often held by children, that moral behavior is always rewarded and immoral behavior is always punished.