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Consider a 2-year CDS with $1.00 notional principal. Default intensities are 8% and 15% in years 1 and 2. The discount rate is 5% and

Consider a 2-year CDS with $1.00 notional principal. Default intensities are 8% and 15% in years 1 and 2. The discount rate is 5% and the CDS spread is 6.73%. What is the present value of the CDS payments? Record your answer with four decimal places of precision

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