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4. Suppose two firms enter into a 4-year credit default swap onin March 2021. Assume the notional principal is $125 million andthe buyer agrees to

4. Suppose two firms enter into a 4-year credit default swap onin March 2021. Assume the notional principal is $125 million andthe buyer agrees to pay 80 basis points per annum with paymentsbeing m 2 answers

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