List the cash flows and their timing for the seller

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Question: A credit default swap requires a semiannual payment at the rate of 90 basis points per year. The principal is $200 million and the credit default swap is settled in cash. A default occurs after 3 years, and the calculation agent estimates that the price of the cheapest deliverable bond is 30% of its face value shortly after the default. List the cash flows and their timing for the seller of the credit default swap.

Reference no: EM133369106

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