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Assume a company's hazard rate is a constant 8% per year, or 2% per quarter. An investor sells five-year CDS protection on the company with

Assume a company's hazard rate is a constant 8% per year, or 2% per quarter. An investor sells five-year CDS protection on the company with the premiums paid quarterly over the next five years. What is the probability of survival for the first quarter? [A] 110% [B] 112% [C]90% [D] 98%

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