Please answer these questions below

Survival Probability and Absolute Default Probability Recall-the CDP is 3% Find the survival probability and absolute default probability Remember: PV of expected premiums = Finding PV of Expected Premiums Recovery rate =30% (CDS buyer gets 70% of face value in a cash payout). We assume that default occurs at year end. Survival Probability and Absolute Default Probability Recall-the CDP is 3% Find the survival probability and absolute default probability Remember: PV of expected premiums = Finding PV of Expected Premiums Recovery rate =30% (CDS buyer gets 70% of face value in a cash payout). We assume that default occurs at year end