Commercial Bank of Windhoek has credited Upington Solar Corporation with R550m, with a maturity of two years. Expected loss for Commercial Bank of Windhoek’s loan to Upington Solar Corporation is...

Commercial Bank of Windhoek has credited Upington Solar Corporation with R550m, with a maturity of two years. Expected loss for Commercial Bank of Windhoek’s loan to Upington Solar Corporation is R16,5m and the recovery rate is assumed to be 23%. Calculate the probability of loan default (PD) for Upington Solar Corporation.