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6. Evaluate correctness of your friend who further asks you about the Credit Default Swaps (CDS) Market how the protection buyer can agree to pay

6. Evaluate correctness of your friend who further asks you about the Credit Default Swaps (CDS) Market how the protection buyer can agree to pay premiums (amounting to 5 percent of the bond contract's notional value) regularly to get in a credit event only those premium payments of 5 percent of the bond contract's notional value from the protection seller if the recovery value (recoverable amount) in a credit event is 25%

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