A fiveyear credit default swap entered into on June 20, 2023, requires quarterly payments at the rate
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A five‐year credit default swap entered into on June 20, 2023, requires quarterly payments at the rate of 400 basis points per year. The principal is $100 million. A default occurs after four years and two months. The auction process finds the price of the cheapest deliverable bond to be 30% of its face value. List the cash flows and their timing for the seller of the credit default swap.
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