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Suppose that the CDS spreads for 1-, 3-, 5-, 7- year instruments are 50, 75, 80, 90 basis points, respectively and the expected recovery rate

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Suppose that the CDS spreads for 1-, 3-, 5-, 7- year instruments are 50, 75, 80, 90 basis points, respectively and the expected recovery rate is 50%. Calculate: . Unconditional default probability in the interval between 2 and 4 years . Survival probability up in the first 6 years

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