Why should I choose AnalystNotes?
AnalystNotes specializes in helping candidates pass. Period.
Basic Question 14 of 20
For a 10-year corporate bond the probability of default is estimated to be 2%. The expected recovery rate in the event of default is 70%. What is the expected loss?
B. 0.6%
C. 0.686
A. 1.4%
B. 0.6%
C. 0.686
User Contributed Comments 0
You need to log in first to add your comment.
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
describe credit risk and its components, probability of default and loss given default
CFA® 2025 Level I Curriculum, Volume 4, Module 14.