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4 I Quiz instructions The true price of 5 different defauttable coupon paying bonds with non-zero recovery are specified in worksheet Calibration in the workbook

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4 I Quiz instructions The true price of 5 different defauttable coupon paying bonds with non-zero recovery are specified in worksheet Calibration in the workbook AssignmentS cds.xlsx. The interest rate is r =5% per annum. Calibrate the six month hazard rates A6 to A15 to by minimizing the SumError ensuring that the term structure of hazard rates are non-decreasing. You can model the non-decreasing hazard rates by adding constraints of the form A65A7,. ..,A155A16. Report the hazard rate at time 0 as a percentage. Submission Guideline: Give your answer in percent rounded to M0 decimal places. For example. if you compute the answer to be 73.236T%. submit 73.24. point

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