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arunasingh5 arunasingh5
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Posts: 128
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8 months ago
ABC Bank enters into a credit default swap with XYZ Financial. The notional amount of the swap is $50 million. The 5-year swap is based upon a 5-year loan to LMN Corp. The size of the protection payment is 3% per year. As LMN bankrupts during the time this swap is still valid, XYZ has paid ABC $22.5 million for settlements. What is the recovery ratio on the underlying loan?


▸

60%



▸

55%



▸

45%



▸

40%

Textbook 
Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
Authors:
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jgunn88jgunn88
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8 months ago
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arunasingh5 Author
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8 months ago
This helped my grade so much Perfect
larrybrads
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Yesterday
Brilliant ツ
2ne1_12345
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2 hours ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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