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If a 5-year CDS spread for a company is 120 bps per annum and the expected recovery rate in the event of a default of

If a 5-year CDS spread for a company is 120 bps per annum and the expected recovery rate in the event of a default of the company is 50%.

What is the average probability of a default per year over the next 5-year period, conditional on no earlier default?

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