Modify the data on theCDSpricing

worksheet in the workbookbonds_and_cds.xlsx

to compute a par spread in basis points for a 5yr CDS with notional principalN =10

N=10million assuming that the expected recovery rateR = 25\%

R=25%, the 3-month hazard rate is a flat1\%

1%, and the interest rate is5\%

5%per annum.

Submission Guideline:Give your answer inbasis pointsrounded to two decimal places (1 bps = 0.01%).