Question Details

(Solution) - From Table 11A 1 what is the probability of a loan

Brief item decscription

Solution download

Item details:

From Table 11A-1, what is the probability of a loan upgrade? A loan downgrade?
The probability of an upgrade is 5.95% + 0.33% + 0.02% = 6.30%. The probability of a downgrade is 5.30% + 1.17% + 0.12% = 6.59%.
a. What is the impact of a rating upgrade or downgrade?
b. How is the discount rate determined after a credit event has occurred?
c. Why does the probability distribution of possible loan values have a negative skew?
d. How do the capital requirements of the CreditMetrics approach differ from those of the BIS and Federal Reserve System?


About this question:

This question was answered on: Jul 11, 2017

PRICE: $15 (18.37 KB)

Buy this answer for only: $15

Pay using PayPal (No PayPal account Required) or your credit card. All your purchases are securely protected by PayPal.

Need a similar solution fast, written anew from scratch? Place your own custom order

We have top-notch tutors who can help you with your essay at a reasonable cost and then you can simply use that essay as a template to build your own arguments. This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student. New solution orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

Order Now