There Are Four Types of Credit Default Swaps: Single-Name Credit

question 73

True/False

There are four types of credit default swaps: single-name credit default swap, multiple-name credit default swap, basket credit default swaps, and credit default swap indexes.

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Definitions:

Simple Rate

A basic form of interest calculation representing a percentage of the principal amount over a certain period of time.

Payback Period

The payback period is the duration of time it takes to recover the cost of an investment. This metric is commonly used to assess the feasibility or profitability of a project.

Straight-Line Method

A method of calculating depreciation or amortization that allocates evenly the cost of an asset over its useful life.

Working Capital

The difference between a company's current assets and its current liabilities, indicative of its short-term financial health.