A Credit Default Swap Functions Like an Insurance Policy Against

question 51

True/False

A credit default swap functions like an insurance policy against the possibility of default on a bond or other security collateralized by debt.

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Definitions:

Fossa Ovalis

The fossa ovalis is an anatomical feature of the heart, a depression in the right atrium wall, marking the spot where an opening, the foramen ovale, existed in the fetal heart.

Papillary Muscle

Muscles located in the ventricles of the heart, attaching to the cusps of the atrioventricular valves via chordae tendineae and preventing valve inversion.

Foramen Ovale

An opening in the septum between the right and left atria of the fetal heart, which normally closes shortly after birth.

Ligamentum Arteriosum

The ligamentum arteriosum is a small ligament that is a remnant of the fetal circulation's ductus arteriosus, connecting the aortic arch to the pulmonary artery, closing shortly after birth.