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Moreso curious about the process of solving these questions so I have switched out the real question with example numbers (I want to solve the

Moreso curious about the process of solving these questions so I have switched out the real question with example numbers (I want to solve the real question on my own).

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5%. Consider a 2-year CDS. Assume the conditional default probability is %% in year 1 and 12% in year 2. Calculate the equilibrium CDS Spread. Assume a 4% riskfree rate and 20% recovery given default

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