What is the implied default probability of a bond given the credit default swap details...
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What is the implied default probability of a bond given the credit default swap details below?
| CDS spread (premium) | 270 | basis points |
| Estimated recovery rate: | $40 | per 100 face value |
Group of answer choices
5.5%
6.5%
7.5%
8.5%
4.5%
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