I calculated pmt of mortgage payment and deducted from the value given. It matches one of the answers, answer c I think.
I didn't choose recovery rates have log normal distribution because I think they have beta distribution. The question had many choices but I don't seem to remember those...
Vaguely remember two questions.
1. What about whether callable option is expensive/cheaper for issuer/investor? I chosen callable option is costly for investor compared to bond w/o option?
2.2For operational risk qs, is it true that the operation risk allocation decreases for departments...
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