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What is the implied default probability of a bond given the credit default swap details...

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Finance

What is the implied default probability of a bond given the credit default swap details below?

CDS spread (premium) 270 basis points
Estimated recovery rate: $40 per 100 face value

Group of answer choices

5.5%

6.5%

7.5%

8.5%

4.5%

Answer & Explanation Solved by verified expert
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