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Assume a Hypothetical Credit Default Swap Where the Notional Amount

Question 39

Multiple Choice

Assume a hypothetical credit default swap where the notional amount is $10 million and there are 92 actual days in a quarter. If the swap premium is 400 basis points (0.04) , what is the quarterly swap premium payment made by the protection buyer?


A) $51,111
B) $75,333
C) $102,222
D) $125,378

Correct Answer:

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