Cumulative Default Probability Refers to

question 66

Multiple Choice

Cumulative default probability refers to

• A)probability that a borrower will default over a specified multi-year period.
• B)expected maximum change in the loan rate due to a change in the risk factor on the loan.
• 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.

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Definitions:

Plot Sampling

Using demographics observed in sample plots to estimate demographics of a population as a whole.

Per Capita Growth Rate

Refers to the rate of population growth per individual within a given time frame, often used to assess changes in population size relative to the current population.

Exponential Growth Rate

Exponential Growth Rate describes the increase of a quantity by a consistent rate over proportional time intervals, commonly observed in populations lacking resource limitations.