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Suppose the debt of company has an annual probability of default of 0.5% and an expected recovery rate of 30%. Under our simple model for

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Suppose the debt of company has an annual probability of default of 0.5% and an expected recovery rate of 30%. Under our simple model for credit spreads, what should the credit spread of this company's debt be? (to nearest 1 basis point, where 1 basis point = 0.01%)

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