mgmat IR questionbank (graphics interpretation), Q3

[vrv_misc]

hi mgmat staff,

could you please clarify this :

moody's and S&P question - Q3:

question #2: In a group of 540 corporate bonds, 25% of which are rated BBB and 75% of which are rated BB (both by S&P), the approximate number of bonds expected to default is 135

text from mgmat explanation: "The remaining bonds (540 - 135 = 405) are rated BB by S&P, with a 30% default rate, so 30% of 405"

my question: how can we approximate the default rate for BB to 30%. if you take a straight line on the x axis from BB on the corporate rate graph, BB defaults to 20% and NOT 30%, am I wrong in interpreting the graphical content ? please clarify how is the default rate for BB 30%.

Thanks in advance!

[tim]

sounds like this problem needs a graphic. please post a screenshot so other students can benefit from our explanation by having the whole problem to see..

[vrv_misc]

Thanks Tim, I am unable to find the insert attachment button ? how do i insert an image ?

[tim]

right below the submit button there's a red heading that says "upload attachment"..

[vrv_misc]

Thanks Tim,
but I do not see a red heading that says "upload attachment"..
is it my access control...

who should I request for access to uploading attachments.....mgmat forum moderator ?

[vrv_misc]

ok Tim,

This is what i see at the bottom of my page:

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[tim]

you'll need to contact MGMAT technical support to resolve this issue, because apparently you and i are seeing different things on our screens..