CFA Practice Question

There are 252 practice questions for this study session.

CFA Practice Question

Which factor determines the shape of credit curve?

A. probability of default.
B. loss given default.
C. hazard rate.
Correct Answer: C

For example, if the hazard rate is greater in later years, reflecting that the reference entity debt is risker in the long-term, the credit curve will be upward-sloping.

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