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Probability of default of bond

  • This topic has 1 reply, 2 voices, and was last updated 6d by Avatar of UstractUstract.
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    • Avatar of JFDJFD
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        Hi everyone, doing the final review for saturday but can’t seem to find the formula for the probability of default of a bond.

        Is it: 1- (e^(-(default intensity)(time to maturity)))

        Thanks!

      • Avatar of UstractUstract
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          This represents the rate at which the bond issuer is expected to default over time. It’s sometimes referred to as the hazard rate.

          geometry vibes

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