Marginal default probability refers to the
A. probability that a borrower will default over a specified multiyear period.
B. marginal increase in the default probability due to a change in credit premium
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.
E. probability that a borrower will default in any given year.
Ans: E. probability that a borrower will default in any given year.
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