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A portfolio of bonds consists of five bonds whose default

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A portfolio of bonds consists of five bonds whose default correlation is zero. The one-year probabilities of default of the bonds are: 1%, 2%, 5%, 10%, and 15%. What is the one-year probability of no default within the portfolio?

A. 71%

B. 67%

C. 85%

D. 99%.

Reference no: EM13568909

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