Assume that i1 = 11 per cent and i2 = 12 per cent, and that k1 = 14.50 per cent and k2 = 16.50 per cent. What is the expected probability of repayment on the one-year corporate bonds in one year's time (round to two decimals) ?
A) 86.99 per cent
B) 81.47 per cent
C) 86.50 per cent
D) 95.34 per cent
Correct Answer:
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