Thanks for your reply.
Merton PD/LGD formulas are written under the following LOS:
LOS21.2: Explain the diff between valuing senior and subordinated debt using contingent claim approach
LOS21.3: Explain, from a contingent claim perspective, the impact of stochastic IR on the valuation of risky...
Hi,
Could anyone whose already sat for Part 2 confirm whether or not we're supposed to memorize more complex formulas like the Merton model's PD, etc for the exam?
Some are ridiculously long (especially the one's in Credit Risk section) and I am seriously doubting whether GARP expects us to...
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