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QUESTION 29 The table below shows credit default swaps for Company A. It shows the credit spreads for the three-year and 6-year CDS in January

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QUESTION 29 The table below shows credit default swaps for Company A. It shows the credit spreads for the three-year and 6-year CDS in January and April. Company A CDS Spreads CDS Tenor January Credit Spread April Credit Spread 3-year 200 bps 202 bps 6-year 250 bps 275 bps Based solely on the data in the table, an investor would most likely conclude that the firm's near-term credit risk is: a) stable but deteriorating in the longer term. b) deteriorating but stable in the long term. c) stable but improving in the long term. ooo

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