Question
Face value of the bond is $100 million, and CDS spread is 80 basis points. Whats the annual insurance premium paid by the CDS buyer
Face value of the bond is $100 million, and CDS spread is 80 basis points. Whats the annual insurance premium paid by the CDS buyer to the CDS seller?
| a. | 80,000 | |
| b. | 8,000,000 | |
| c. | 800,000 |
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Public Finance In Canada
Authors: Harvey Rosen, Beverly George Dahlby, Roger Smith, Jean-Francois Wen, Tracy Snoddon
3rd Canadian Edition
0070951659, 978-0070951655
