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Question 4 9.8 pts Assume an investor holds $10 million of credit protection on a company with the following debt issues trading in the market.

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Question 4 9.8 pts Assume an investor holds $10 million of credit protection on a company with the following debt issues trading in the market. A 5-year senior unsecured bond trading at 42% of par. A 1-year senior unsecured bond trading at 45% of par. A 3-year subordinated unsecured bond trading at 12% of par. The company files for bankruptcy. What is cash settlement on the cheapest-to-deliver obligation for a senior CDS contract? Question 4 9.8 pts Assume an investor holds $10 million of credit protection on a company with the following debt issues trading in the market. A 5-year senior unsecured bond trading at 42% of par. A 1-year senior unsecured bond trading at 45% of par. A 3-year subordinated unsecured bond trading at 12% of par. The company files for bankruptcy. What is cash settlement on the cheapest-to-deliver obligation for a senior CDS contract

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