Question
3.In a CDS contract we always have A buyer A seller A reference entity Two buyers A broker A buyer, a seller and a reference
3.In a CDS contract we always have
A buyer
A seller
A reference entity
Two buyers
A broker
A buyer, a seller and a reference entity.
4. CDS spreads can be used to:
Top of Form compute the PD of the buyer
compute the PD of the seller
compute the PD of the reference entity
compute the PD of the reference entity and the buyer together compute the PD of the reference entity and the seller together
5.In a CDS, the notional principal is $100,000 dollars. Every quarter the buyer pays 250 dollars to the seller of the CDS. What is the CDS spread in basis points?
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Forecasting Methods And Applications
Authors: Spyros G. Makridakis, Steven C. Wheelwright, Rob J Hyndman
3rd Edition
0471532339, 9780471532330
