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Suppose that the CDS spreads for 5 -year and 10 -year instruments are 60 basis points and 130 basis points, respectively, with an expected recovery

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Suppose that the CDS spreads for 5 -year and 10 -year instruments are 60 basis points and 130 basis points, respectively, with an expected recovery rate of 45%. What are the average default intensities over 5 years and 10 years? (Use the bootstrap approximation method.) 1.09% and 2.18%, respectively 1.09% and 2.36%, respectively 1.18% and 2.36%, respectively 1.18% and 2.18%, respectively

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