- CFA Exams
- CFA Exam: Level II 2021
- Study Session 13. Fixed Income (2)
- Reading 36. Credit Default Swaps
- Subject 3. Basics of valuation and pricing

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**CFA Practice Question**

True or False? Generally, the probability of default is lower initially but is greater over a longer period of time.

Correct Answer: True

For example, the probability of default on the final interest and principal payment is greater that that on the first interest payment.

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