How much per year will you pay in cds premia

Assignment Help Finance Basics

Reference no: EM132194328

Question - 5-year CDX NA IG index is quoted by a market maker as bid 160 bp, ask (offer) 165 bp. This index includes 125 North American investment-grade companies. Suppose you want $800,000 of protection for each company. (Don't forget to show all work)

A) How much per year will you pay in CDS premia?

B) When one of the 125 companies defaults, your annual premium payment will be reduced by how much?

Reference no: EM132194328

Questions Cloud

Forensic analysis of your past decisions and performance : do a significant amount of forensic analysis of your past decisions and performance--what worked, what didn't and why

Analyze reimbursement and payment systems : HIIT 102 : Demonstrate the ability to locate quality HIM sources; Analyze reimbursement and payment systems;

How does amazon interact with external stakeholders : How does Amazon interact with External Stakeholders (Start-ups, scientists, educational institutions etc.) in order to generate innovation and marketing ideas?

Turn the accommodation of employees : How can a manager turn the accommodation of employees' religious and/or spiritual perspectives into a competitive business advantage?

How much per year will you pay in cds premia : 5-year CDX NA IG index is quoted by a market maker as bid 160 bp, ask (offer) 165 bp. How much per year will you pay in CDS premia

Define productivity for you : Define productivity for you. Estimate how productive you believe you will be and what your productivity will consist of, when you are in the last stage

Describe the possible meanings and relationships : "A poetry explication is a relatively short analysis which describes the possible meanings and relationships of the words, images, and other small units.

Where did the popular ingredients originate : How has ecology played a part in establishing the region's cuisines and cultures? What grows naturally in this region before Columbian Exchange?

Stiffen the requirements for cleaning pollutants : The EPA is planning to stiffen the requirements for cleaning pollutants from the stacks of? coal-fired electricity generating? plants, requiring a? 30%

User Account

All Pages