Would you please explain how your calculation of 2 x 30% x (1-30%)=42% for the question in bold? Specifically why are you multiplying 3% times 2 and no simply 30% times 70%?

You own two bonds. Both bonds have a 30% probability of defaulting. Their default probabilities

are statistically independent. What is the probability that both bonds default?

**What is the**

probability that only one bond defaults? What is the probability that neither bond defaults?

probability that only one bond defaults

Thanks