How much per year will you pay in cds premia

Assignment Help Finance Basics

Reference no: EM132199795

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.

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: EM132199795

Questions Cloud

Approaches for building information systems in digital era : Research and explain the new approaches for building information systems in the digital era.

Define historical relationship between humans and machines : Write an essay that considers the historical relationship between humans and machines based on Tim's Vermeer and AlphaGo.

What would you expect to the current market price per share : Golden Manufacturing is expected to pay a dividend of $8 per share of common stock, What would you expect to the current market price per share

The workplace to improve corporate culture : Talk about using Effective Communication in the Workplace to Improve Corporate Culture

How much per year will you pay in cds premia : Suppose you want $800,000 of protection for each company. How much per year will you pay in CDS premia

Distinguish between four kinds of organizational change : Distinguish between the four kinds of organizational change that can be promoted with information technology.

Selecting and evaluating information systems projects : What methods can be used for selecting and evaluating information systems projects? What methods can be used for aligning them with the firm's business goals?

Determining the present value of an expected cash flow : Business decisions are based on the time value of money. Bonds, stocks, loans, and other business investments are valued by determining the present value.

Aligning them with the firm business goals : What methods can be used for selecting and evaluating information systems projects? What methods can be used for aligning them with the firm's business goals?

Reviews

Write a Review

Required(*) Message

Finance Basics Questions & Answers

Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages