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Consider a 5-year CDS with an average conditional default probability of 7.0%, recovery rate given default of 20%, a notional principal of $1.00, and a

Consider a 5-year CDS with an average conditional default probability of 7.0%, recovery rate given default of 20%, a notional principal of $1.00, and a 5% discount rate. What is the equilibrium CDS spread?

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