1. How is a credit swap like an insurance contract? Who is the insurer in a credit swap? Why would a
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1. How is a credit swap like an insurance contract? Who is the insurer in a credit swap? Why would anyone want to buy such insurance?
2. A bond promises to pay $12,000 and costs $10,000. The promised discount on equivalent bonds is 25% per annum. Is this bond a good deal?
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