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3. The present value of expected payments on a 5-year Credit Default Swap is 4.3550 and the PV of expected payoff is 0.0895. The PV

3. The present value of expected payments on a 5-year Credit Default Swap is 4.3550 and the PV of expected payoff is 0.0895. The PV of the expected accrual payment is 0.0527. Suppose the conditional default rate is 3% (Please round your answers off to four decimal places) (a) (5 points) What is the swap spread, s? (b) (5 points) What is the survival probability in year 3? (c) (5 points) What is the absolute default probability in year 3

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