(The only numerical question requiring Excel/Calculator) Finally, gave me a probability based, expected default rate question. The exact question was that the company has to calculate the expected default rate given the minimum return they look for is 15% over lease value. The given lease value was $1000, and the scaling factor (lease cost) was 60% of lease value. Another cost, the cost of service that the company bears is $50, which is taken from customer while making the deal. Now, to simplify there were only 2 possible outcomes mentioned which is full payment over 12 months or default before the payments start.
