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Now assume a risk neutral default intensity for company A of 1 0 % and a risk neutral loss given default of 3 0 %

Now assume a risk neutral default intensity for company A of 10% and a risk neutral loss given default of 30%. Suppose that the riskless spot curve is flat at 0%. Calculate the at-market annual spreads for 5-year and 10-year CDS contracts on company A. Show all the steps in your calculation

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