A Credit-Linked Debenture (CLD) ________

question 44

Multiple Choice

A credit-linked debenture (CLD) ________.

• A) is a credit derivative, typically a credit default swap.
• B) cannot be complicated.
• C) is the credit protection seller; the investor in the CLN is the credit protection buyer
• D) is unlike a standard bond.

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Definitions:

Irreparable

Impossible to repair, fix, or make right; typically used to describe damage or harm that is permanent or beyond restoration.

Aggravated Assault

An enhanced form of assault involving factors that raise the crime's severity, such as the use of a deadly weapon or intent to do serious harm.

Felony

A serious crime, usually punishable by imprisonment for more than one year or by death.

Misdemeanor

A criminal offense that is less serious than a felony and generally punishable by fines, sanctions, or imprisonment for less than one year.