Owners of a Credit Default Swap Tied to the Default

question 55

Multiple Choice

Owners of a credit default swap tied to the default of a municipal bond issued by Gotham City can receive payment:

• A)only if they live in Gotham City.
• B)only if they own a Gotham City municipal bond.
• C)even if they do not own a Gotham City municipal bond.
• D)even if Gotham City does not default on municipal bond payments.

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