Question: compute a par spread in basis points for a 5yr Credit Default Swap with notional principal N=10 million assuming that the expected recovery rate R=25%,

compute a par spread in basis points for a 5yr Credit Default Swap with notional principal N=10 million assuming that the expected recovery rate R=25%, the 3-month hazard rate is a flat 1%, and the interest rate 5% per annum

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