Please include spreadsheet

Problem: la] {10) Consider the iTraxx Europe 5-year index (newly constituted). With quarterly payments and a quoted CD5 spread on the index of 24 bps. Find the corresponding constant conditional default probability {conditional on no default in earlier periods] expressed as a default Intensity. Assume a M393 recovery rate, a correlation of 0.15, and that the term structure of risk-free rates is at at 3.5%. (Hint: Refer to the technique used in the spreadsheet for Example 25.2 we are looking for the same default probability here, but 1with quarterly grlods to facilitate the process described in Section 25.2. Consider reconstructing Hull's result for Example 25.2 as a check.} (bi (20] Price the egum tranche of the iTraxx Europe 5-year index again with the assumptions stated above (and use your result from (a) for the constant hazard rate in equation (25.6), as in Example 25.2) but also assume a copula correlation of 0.15. Use an M=60 Gaussian quadrature to find the unconditional values necessary to determine the solution. it) {15] If the quoted price on the equity tranche was 11.25%, what is the implied compound correlation and what is the implied base correlation