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

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Definitions:

Self-efficacy

A belief in one's abilities to succeed in specific situations or accomplish a task.

Diverse Representation

The inclusion and portrayal of various demographic groups and identities in media, organizations, and social settings.

Self-esteem

A person's personal assessment of their own significance or value.

Self-construal

Self-construal refers to how individuals perceive, comprehend, and interpret themselves, often influenced by cultural and social contexts.