If the CDS Spread for a Regular 5-Year CDS Is

question 11

Multiple Choice

If the CDS spread for a regular 5-year CDS is 120 basis points,what is the CDS spread for a 5-year binary CDS on the same underlying reference entity? Assume a recovery rate of 40%.

• A) 48 basis points
• B) 72 basis points
• C) 200 basis points
• D) 300 basis points

Analyze the effects of cash transactions that create liabilities or assets on the accounting equation.

Comprehend and apply the correct journal entries for various types of accounting adjustments including accruals, deferrals, and adjustments for prepaid expenses.

Identify the role and calculation of ratios, such as total asset turnover ratio and earnings per share, in evaluating company performance.

Understand the process of recording and adjusting for unearned revenue.

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Definitions:

Logic

A process of solving complex problems through the repeated use of simple functions that can be either true or false. The three basic logic functions are AND, OR, and NOT.

Routines

Predefined sequences of code that perform a specific task and can be executed by a program.

Scope

In programming, the context or range in which a variable or function is accessible or valid.

Tag

"A text-based name for an area of the controller’s memory where data are stored."