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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!
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)Step by Step Solution
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