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2. A firms default probability is estimated as 5%. If the firm defaults, creditors can get only 20% of the original debt value. What is

2. A firms default probability is estimated as 5%. If the firm defaults, creditors can get only 20% of the original debt value. What is the price of a credit default swap that completely protects a $100 million bond issued by the firm? The discount rate is 10%.

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