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Credit Default Swap
A financial derivative that allows an investor to "swap" or offset their credit risk with that of another investor.
Par Value
The face value of a bond or a stock, as stated by the issuing company, which may differ from its market value.
Zero-Coupon Bond
A zero-coupon bond is a type of bond that does not pay periodic interest but is issued at a significant discount to its face value and redeemed for its full face value at maturity.
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Q14: The author of your text argues that:<br>A)
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