Question: Modify the data on the worksheet in the workbook to compute a par spread in basis points for a 5yr CDS with notional principalN N=10

Modify the data on the worksheet in the workbook

to compute a par spread in basis points for a 5yr CDS with notional principalN

N=10 million assuming that the expected recovery rateR=25%, the 3-month hazard rate is a flat

1% and the interest rate is 5% per annum.

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