Work out with details ,thanks.

The market quoted credit default swap spreads for an A-rated counterparty are 325 bps per annum for all maturities out to five years. Assuming a loss given default rate of 40%, which of the following is closest to the implied risk-neutral probability that the counterparty will default at some point with the next two years? A. 5% B. 8% C. 10% D. 15%