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anonymous

  • one year ago

the following formula expresses the expected amount lost when a borrower defaults on a loan where PD is the probability of default on the loan EAD is the exposure at default (the face value of the loan), and LGD is the loss given default (expressed as a decimal).for a certain class of mortgages,6% of the borrowers are expected to default. the face value of these mortgages averages $300,000 on average, the bank recovers 80% of the mortgaged amount if the borrower default by selling the property. im so lost on it pl help me

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  1. mindblast3r
    • one year ago
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    whats this asking for exactly?

  2. anonymous
    • one year ago
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    When posting a question it helps if you state what math course the quesion is from.

  3. anonymous
    • one year ago
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    what is the expected loss on mortgages? expected loss=$

  4. mindblast3r
    • one year ago
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    to hard, sorry.

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