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U have that the Tranche u BOUGHT has a SD of 20 versus the CDS spread. Assuming that the CDS moves down by 50 bps

U have that the Tranche u BOUGHT has a SD of 20 versus the CDS spread. Assuming that the CDS moves down by 50 bps and the principal of the Tranche is 10,000,000 what is going to be the change of the Tranche MV?

-1,000,000

+1,000,000

-1,500,000

None of the above

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