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  A portfolio consists of 17 uncorrelated bonds, each rated B. The 1-year marginal default probability of each bond is 5.93%. Assuming an even spread of default probability over the year for each of the bonds, what is the probability of exactly 2 bonds defaulting in the first month?
  A.     0.0325%
  B.     0.325%
  C.     0.024%
  D.     0.24%
  Answer: B
  Given a 1-year marginal default rate of 5.93%, the 1-month marginal default rate is
  The number of combinations of 2 bonds from 17 bonds is 17×16/2, and so the probability of exactly 2 bonds defaulting in the first month is: