List the possible outcomes of a default on a corporate bond

Reference no: EM131035004

(i)List the possible outcomes of a default on a corporate bond.
(ii) Describe how the Jarrow-Lando-Turnbull (J-L-T) credit risk model is an example of a "reduced form model".
(iii) How might the J-L-T model be generalized to allow for changes in credit spreads under different economic conditions? Give a practical example of such a change

Reference no: EM131035004

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