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Suppose two firms enter into a 4-year credit default swap on in March 2021. Assume the notional principal is $125 million and the buyer agrees

Suppose two firms enter into a 4-year credit default swap on in March 2021. Assume the notional principal is $125 million and the buyer agrees to pay 80 basis points per annum with payments being made quarterly. How much is each quarterly payment for the buyer and how much will the buyer pay after four years of quarterly payments if there is no credit event?

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