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An analyst believes that the credit risk on a 6-year, 4% annual payment corporate bond can be expressed by an annual probability of default of

An analyst believes that the credit risk on a 6-year, 4% annual payment corporate bond can be expressed by an annual probability of default of 3% and a recovery rate of 30%. Given that the government yield curve is flat at 2%, calculate the credit spread and credit valuation adjustment for the bond.

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