garp16-p2-33

Question 76 on the 2016 FRM Part II practice exam: A major regional bank has determined that a counterparty has a constant default probability of 5.5% per year. What is the probability of this counterparty defaulting in the fourth year? The probability of default in year 4 =...

Hi everyone, I have one follow up question. The question #33 is: An analyst estimates that the hazard rate for a company is 0.16 per year. The probability of survival in the first year followed by a default in the second year is closest to: a. 11.62%. b. 13.63%. c. 14.79%. d. 27.39%. The...