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What is the probability of default (PD) in credit risk management?

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What is the probability of default (PD) in credit risk management?

B) The amount of loss a lender incurs if a borrower defaults

0%

C) The total value exposed to loss at the time of default

0%

D) The interest rate charged on a loan

0%

A) The likelihood that a borrower will default on their debt obligations

100%✨

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