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Basic Question 16 of 20

The degree of likelihood that the borrower of a loan will not be able to make the necessary scheduled principal and interest payments is referred to as:

A. Default probability.
B. Loss given default.
C. Present value of expected loss.

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Learning Outcome Statements

describe credit risk and its components, probability of default and loss given default

CFA® 2024 Level I Curriculum, Volume 4, Module 14.