8. Credit default swaps Suppose Keeler Company purchased mortgage-backed securities with a par value of $60 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 $60 million. Skylark Bank is willing to sell the CDS contract for these MBSs over the three years for a premium of 2 percent of the value per year. Keeler Company bn, answer the questions that follow. Skylark Bank would pay per quarter over the next three years for the credit default swaps. If the mortgage-backed securities default in quarter 1 of year 1, then will pay Suppose Keeler Company purchased mortgage-backed securities with a par value of $50 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 $60 million. Skylark Bank is willing to sell the CDS contract for these MBSs over the three years for a premium of 2 percent of the value per year. Keeler Company Given the information, answer the q Skylark Bank would pay per quarter over the next three years for the credit default swaps. If the mortgage-backed securities default in quarter 1 of year 1, then will pay Suppose Keeler Company purchased mortgage-backed securities with a par value of $60 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 $60 million. Skylark Bank is willing to sell the CDs contract for these MBSs over the three years for a premium of 2 percent of the value per year. Given the information, answer the questions that follow. would pay Keeler Company larter over the next three years for the credit default swaps. Skylark Bank If the mortgage-backed securities default in quarter 1 of year 1, then will pay Suppose Keeler Company purchased mortgage-backed securities with a par value of $60 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 $60 million. Skylark Bank is willing to sell the CDS contract for these MBSs over the three years for a premium of 2 percent of the value per year. Given the information, answer the questions that follow. would pay Keeler Company per quarter over the br the credit default swaps. Skylark Bank If the mortgage-backed securities default in quarter 1 of year 1, then will pay