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B) (i)Explain the mechanics of a standard credit default swap (CDS) using a diagram. (5 marks) ii) Evaluate why CDS markets provide an important barometer

(i)Explain the mechanics of a standard credit default swap (CDS) using a diagram. (5 marks)

ii) Evaluate why CDS markets provide an important barometer of the creditworthiness of corporate bond markets. (8 marks)

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