• "California Earthquake Authority (CEA) sponsored a catastrophe bond that covers Magnitude 7.0 or above earthquake in California." According to this information and in this cat bond transaction, CEA _____.

  Answers:	will receive coupon (interest) payments from this cat bond
  	will receive payments only if a Magnitude 7.0 or above earthquake hits California before the maturity of the bond
  X not this one	will not have to make coupon payments if a Magnitude 7.0 or above earthquake doesn't occur in California before the maturity of the bond
  	is an investor in this cat bond