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Assuming the current market value of the CDS is 450,000$ from a buyer perspective. Given that the spread duration of this CDS is 3.5 what

  1. Assuming the current market value of the CDS is 450,000$ from a buyer perspective. Given that the spread duration of this CDS is 3.5 what will the new CDS MV if the spread drops by 50 bps. Assunme the principal is 10,000,000

    275000

    625000

    No Change

    None of the Above

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