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Explain why the position of a buyer of a credit default swap is similar to the...

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Finance

Explain why the position of a buyer of a credit default swap issimilar to the position of someone who is long a risk-free bond andshort a corporate bond.

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Answer Credit default swap It is a derivative contract that allows investor to swap hisher credit risk with other investor It is used to transfer the credit risk between two or more parties In this buyer    See Answer
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Explain why the position of a buyer of a credit default swap issimilar to the position of someone who is long a risk-free bond andshort a corporate bond.

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