6.Consider a firm that has a cumulative default probability over 9 years of 18 percent and amarginal probability of default in the 10th year of 9 percent. The cumulative default probability of this firm over 10 years will be：
　　A. 21.29%.
　　B. 23.65%.
　　C. 25.38%.
　　D. 27.00%.
　　Correct answer：C
　　7.BBB-rated firms have default rates of 0.2% over the first year and 6.6% the year after. The cumulative default probability of such firms over the two years is CLOSEST to：
　　A. 0.01%.
　　B. 6.79%.
　　C. 6.80%.
　　D. 6.81%.
　　Correct answer：B
　　8. Ba-rated firms have been observed to have probability of default of 0.8， 1.4 and 2.1 percent during years 1， 2， and 3 from present. The probability that a Ba-rated firm will default within the next three years is CLOSEST to：
　　A. 1.43%.
　　B. 3.47%.
　　C. 4.24%.
　　D. 4.30%.
　　Correct answer：C
　　9. A trader has long positions of $100 million and $300 million on two securities that have default probabilities of 6 percent and 10 percent respectively. If the joint probability of default is 2 percent and the recovery rate is 55 percent， the total expected loss due to credit defaults over the next year is CLOSEST to：
　　A. $12.60 million.
　　B. $18.72 million.
　　C. $19.39 million.
　　D. $19.80 million.
　　Correct answer：B
　　10.BBB-rated firms have default probability of 0.2% over a period of one year. Based on this information the default probability over the next quarter will be CLOSEST to：
　　A. 0.05%.
　　B. 0.45%.
　　C. 0.50%.
　　D. 1.50%.
　　Correct answer：A