2 Credit Default Swap 1. In Bloomberg use the CDSV (CDS Curve) function to plot the CDS of Italy and Germany. Include the graph in your report. What is noticeable? Why do you think the CDS curve is humped shaped? What are the markets saying about the short, medium and long-term prospects of Italy. 2. The debt of Italy is currently rated BBB- which is the lowest investment grade rating. Can you find another country with the same or similar rating and plot the CDS curve. How do the CDS of that country compare with Italy? Show the CDS curve for that country. 3. How much does it cost to protect 810,000,000 worth of Italy debt every year (on the 5 year contract). What is it for Germany'? 2 Credit Default Swap 1. In Bloomberg use the CDSV (CDS Curve) function to plot the CDS of Italy and Germany. Include the graph in your report. What is noticeable? Why do you think the CDS curve is humped shaped? What are the markets saying about the short, medium and long-term prospects of Italy. 2. The debt of Italy is currently rated BBB- which is the lowest investment grade rating. Can you find another country with the same or similar rating and plot the CDS curve. How do the CDS of that country compare with Italy? Show the CDS curve for that country. 3. How much does it cost to protect 810,000,000 worth of Italy debt every year (on the 5 year contract). What is it for Germany