Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Assume you have bought a CDS with a market value of 1,000,000 dollars and the spread appreciated by 20 bps. If the Spread duration of
Assume you have bought a CDS with a market value of 1,000,000 dollars and the spread appreciated by 20 bps. If the Spread duration of CDS is 4.5 what will be the new MV assuming that the principal of CDS is 200,000,000?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started