27.13 Alternative uses of the formula To calculate CDs spreads from the probabilities of default and expected recovery rate To bootstrap the probabilities of default from Cds spreads and expected recovery rates Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 27.13 Alternative Uses of the Formula • To calculate CDS spreads from the probabilities of default and expected recovery rate • To bootstrap the probabilities of default from CDS spreads and expected recovery rates