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thanks guys. very helpful tips.

That makes sense. Thanks much!

so same for LGD too, right? The variance of LGD will be LGD*RR. If LGD, EDF and exposure are given, Unexpected Loss can be calculated.

This is the clearest explaination I've seen so far. really helpful. thanks David!

when i first look at this, i would think A is a coupon paying bond, so D <30; B is a zero-coupon bond, so D=30. To me that's what the question is trying to tell. So i would pick B without more thinking.