Given CDS spreads with the following tenors. Exercise $2\mathrm{.}2$

Given CDS spreads with the following tenors.

$\backslash$table$[[$Tenor$,$CDS Spread,RN Default Prob$],[1,1\mathrm{.}0\%,],[2,1\mathrm{.}2\%,],[3,1\mathrm{.}4\%,],[4,1\mathrm{.}6\%,],[5,1\mathrm{.}7\%,]]$

Risk free rate of $5\%$ flat continuously compounded and a recovery rate of $40\%.$

What are the risk neutral default probabilities for each year?

What is the value of an existing $5-$year CDS with a $200$bp spread?

What is the par $5-$year Binary CDS spread?

Tenor

CDS Spread

RN Default Prob

$1$

$1\mathrm{.}0\%$

$2$

$1\mathrm{.}2\%$

$3$

$1\mathrm{.}4\%$

$4$

$1\mathrm{.}6\%$

$5$

$1\mathrm{.}7\%$

Risk free rate of $5\%$ flat continuously compounded and a recovery rate of $40\%.$

What are the risk neutral default probabilities for each year?

What is the value of an existing $5-$year CDS with a $200$bp spread?

What is the par $5-$year Binary CDS spread?