49. In a company reorganization there can be conflicts of interests:

A. senior creditors have an incentive to deflate asset values, while junior creditors have an incentive to inflate them

B. senior creditors have an incentive to inflate asset values, while junior creditors have an incentive to deflate them

C. senior creditors have an incentive to delay proceedings

D. junior creditors have an incentive to speed up proceedings

50. In a Credit Default Swap (CDS):

A. the writer offers the buyer protection against a credit event. In other words, the CDS buyer buys credit risk. The CDS writer sells credit risk if there is a default.

B. the buyer offers the seller protection against a credit event. In other words, the CDS buyer sells credit risk. The CDS writer buys credit risk if there is a default.

C. the buyer offers the seller protection against a credit event. In other words, the CDS buyer buys credit risk. The CDS writer sells credit risk if there is a default.

D. the writer offers the buyer protection against a credit event. In other words, the CDS buyer sells credit risk. The CDS writer buys credit risk if there is a default

51. A 5-year CDS for Ford Motor Company debt has the following: Nominal amount = $5 million; premium of 150 bp on April 27, 2014, 5-year protection. The CDS will cost per quarter:

A. $750,000

B. $18,750

C. $93,750

D. $37,500