8. Credit default swaps Suppose Keeler Company purchased mortgage-backed securities with a par value of $30 million. The Keeler Company is concerned that the mortgage backed securities could default over the next three years and purchases credit default swaps as insurance on the MBSs. The maximum amount to be paid for the credit default swap is $30 million. Schiller Bank is willing to sell the CDs contract for these mess over the three years for a premium of 3 percent of the value per year. Given the information, answer the questions that follow. Keeler Company would pay Schiller Bank per quarter over the next three years for the credit default swaps. If the mortgage-backed securitles default in quarter 2 of year 3, then will pay Grade It Now Save & Continue Continue without saving