Question: Given an estimated five-year average probability intensity o f0.0375 on a five-year, BB-rated CDS, a recovery rate of (30 %), and discount rate of (5

Given an estimated five-year average probability intensity o f0.0375 on a five-year, BB-rated CDS, a recovery rate of $30 \%$, and discount rate of $5 \%$, determine the value and spread on the CDS. Assume $N P=\$ 100$.

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