Suppose that the risk-free zero curve is flat at 6% per annum with continuous compounding and that defaults can occur half way through each year in a new eight- year credit default swap. Suppose that the recovery rate is 25% and hazard rate is 3.2%. Estimate the credit default swap spread if it is a binary CDS? Assume payments are made annually. Suppose that the risk-free zero curve is flat at 6% per annum with continuous compounding and that defaults can occur half way through each year in a new eight- year credit default swap. Suppose that the recovery rate is 25% and hazard rate is 3.2%. Estimate the credit default swap spread if it is a binary CDS? Assume payments are made annually