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The credit spreads for a 5-year bond and 6-year bond are 2% and 2.2% respectively. The recovery rate is 60%. What is the unconditional default

  1. The credit spreads for a 5-year bond and 6-year bond are 2% and 2.2% respectively. The recovery rate is 60%. What is the unconditional default probability for the sixth year?

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