Why should I choose AnalystNotes?
AnalystNotes specializes in helping candidates pass. Period.
Basic Question 17 of 20
For a 10-year corporate bond the probability of default is estimated to be 2%. The expected recovery rate in the event of default is 70%. What is the expected loss?
B. 0.6%
C. 0.686
A. 1.4%
B. 0.6%
C. 0.686
User Contributed Comments 0
You need to log in first to add your comment.
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
describe credit risk and its components, probability of default and loss given default
CFA® 2025 Level I Curriculum, Volume 4, Module 14.