Given a discount rate of (5 %), determine the present value of the payments on a five-year
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Given a discount rate of \(5 \%\), determine the present value of the payments on a five-year CDS with a spread of \(3 \%\) and a \(N P\) of \(\$ 100\). If the recovery rate on the underlying credit is \(30 \%\), what is the probability intensity implied by the spread?
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