Which of the following best describes the make up of a CDO?
A) A security made up of corporate loans and common equity swaps is called a collateralized debt obligation (CDO) .
B) A security made up of corporate loans and preferred swaps is called a collateralized debt obligation (CDO) .
C) A security made up of corporate loans and credit default swaps is called a collateralized debt obligation (CDO) .
D) A security made up of corporate loans and accounts payable default swaps is called a collateralized debt obligation (CDO) .
Correct Answer:
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