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I need someone to answer me this Qs. Thanks in advance! Explain what credit default swap is and how you could use CDS against government

I need someone to answer me this Qs. Thanks in advance!

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Explain what credit default swap is and how you could use CDS against government sovereign risk. (10 marks) (b) Based on the diagram below, answer the following questions Fixed rate:7% Company ABC Company XYZ Floating rate: LIBOR+0.5% What is the swap? (5 marks) (ii) If the notional amount is $3,000,000 and the 1-year LIBOR rate is 6%, what is the net payment? Who is the payer? (10 marks)

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