Consider the following information. Today, Firm A has just issued a fixed rate bond with five years maturity and a YTM of $8\%.$ Firm A has also issued a floating rate bond $($also with five years maturity$)$ and a coupon rate of Libor plus $4\%.$ The floater is issued at par. The current risk$-$free rate for $5-$year maturity is $3\%.$ What is the likely $5-$year CDS spread on a contract where the reference entity is Firm A or Firm A$$s bonds?

Group of answer choices

$8\%$

$7\%$

$3\%$

$4\%$