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The spread on a one one-year BBB rated bond relative to the risk risk-free treasury of similar maturity is 2%. After teasing out the contribution

The spread on a one one-year BBB rated bond relative to the risk risk-free treasury of similar maturity is 2%. After teasing out the contribution to this spread by all non-credit factors (e.g., liquidity risk, taxes), the spread is 1.2%. Assuming the recovery rate for the underlying credit is 40%, what is approximately the implied hazard rate for this bond?

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