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say ABC Ltd has invested $ 1million in 5 year bonds issued by XYZ Ltd. But it has apprehension about by XYZ Ltd in future

say ABC Ltd has invested $ 1million in 5 year bonds issued by XYZ Ltd. But it has apprehension about by XYZ Ltd in future in payment of coupon and principal. If ABC Ltd engages you as a consultant for hedging the risk. Please explain your recommendations on CDS along with a diagram.

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