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If the implied default probability on a 5-year credit default swap is 39:35%, and the swap spread is 750 bps. what is the recovery rate:
If the implied default probability on a 5-year credit default swap is 39:35%, and the swap spread is 750 bps. what is the recovery rate:
(a) 10%; (b) 40%; (c) 1,200 bps; (d) 25%
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