urgent, please provide answer asap. will give good rating this is interest rates and credit derivatives problem.

Problem: (a) (20) Consider the iTraxx Europe 5-year index (newly constituted). With quarterly payments and a quoted CDS spread on the index of 24 bps, find the corresponding constant conditional default probability (conditional on no default in earlier periods) expressed as a default intensity. Assume a 40% recovery rate and that the term structure of risk free rates is flat at 3.5%. (Hint: Refer to the technique used in the spreadsheet for Example 25.2 - we are looking for the same default probability here, but with quarterly periods - to facilitate the process described in Section 25.2. Consider reconstructing Hull's result for Example 25.2 as a check.) Problem: (a) (20) Consider the iTraxx Europe 5-year index (newly constituted). With quarterly payments and a quoted CDS spread on the index of 24 bps, find the corresponding constant conditional default probability (conditional on no default in earlier periods) expressed as a default intensity. Assume a 40% recovery rate and that the term structure of risk free rates is flat at 3.5%. (Hint: Refer to the technique used in the spreadsheet for Example 25.2 - we are looking for the same default probability here, but with quarterly periods - to facilitate the process described in Section 25.2. Consider reconstructing Hull's result for Example 25.2 as a check.)