Question
A Bond with a face value of 100M defaults, with an expected recovery rate of 50%. The bond investor has a long position on the
A Bond with a face value of 100M defaults, with an expected recovery rate of 50%. The bond investor has a long position on the CDS for the Bond. What will the bond investor receive from the CDS seller?
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Financial Reporting And Statement Analysis A Strategic Approach
Authors: Clyde P. Stickney, Paul Brown, James M. Wahlen
5th Edition
032418638X, 978-0324186383
