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A Swap Contract that can be constructed to neutralize a payment of SOFRA +30bps if the party Note: SOFRA is a potential replacement for the

A Swap Contract that can be constructed to neutralize a payment of SOFRA +30bps if the party

Note: SOFRA is a potential replacement for the LIBOR rate

A.

Recieves the Fixed payment

B.

Pays Libor

C.

Pays SOFRA

D.

Receives SOFRA

A key difference between a regular bond and an asset backed security is

A.

Prepayment Risk

B.

Liquidity Risk

C.

Cash Flow Risk

D.

Credit Risk

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