III. Credit default swaps 9. If the implied default probability on a 5-year credit default swap is 73.24%, and the swap spread is 1,450 bps. what is the recovery rate: (a) 45%; (b) 33%; (e) 1,500 bps; (d) 25%. 10. What is the 1-year probability of default assuming the same swap spread and recovery rate above: (a) 23.17%; (b) 18.52%; (c) 33.26%: (d) 42.45%. III. Credit default swaps 9. If the implied default probability on a 5-year credit default swap is 73.24%, and the swap spread is 1,450 bps. what is the recovery rate: (a) 45%; (b) 33%; (e) 1,500 bps; (d) 25%. 10. What is the 1-year probability of default assuming the same swap spread and recovery rate above: (a) 23.17%; (b) 18.52%; (c) 33.26%: (d) 42.45%