4. In the CDS pricing example in the text we assumed a hazard rate to derive the CDS spread and to price the contract. Now assume that the hazard rate is unknown, but assume that you can observe a CDS spread of 200 bp in the market for this credit. The recovery rate is still 40%, the maturity is 5 years, the riskless rate is 4% and the yield curve is flat.

Assumptions about the timing of defaults and accrued premia are unchanged. Calculate the implied hazard rate.