Default Probability in Financial Formulas

Default Probability refers to the likelihood that a borrower or debtor will fail to meet their financial obligations, such as making loan repayments or servicing debt. And is denoted by DP.

Financial formulas that make use of Default Probability

fxExpected LossGo

FAQ

What is the Default Probability?

Default Probability refers to the likelihood that a borrower or debtor will fail to meet their financial obligations, such as making loan repayments or servicing debt.

Can the Default Probability be negative?

{YesorNo}, the Default Probability, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.

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