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2. Which of the following statements is correct? a. A credit default swap pools a variety of bonds and slices the pool into tranches with

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2. Which of the following statements is correct? a. A credit default swap pools a variety of bonds and slices the pool into tranches with b. Typically, shorter maturity implies greater sensitivity of bond prices to changes ofn c. Default risk premium typically decreases during market crisis. d. Current bond holders will most likely earn a negative return if the market interest e. None of the above statements is correct

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