When Explaining Something in Writing, Do Not Hesitate to Use

question 4

True/False

When explaining something in writing, do not hesitate to use technical terminology since your readers should already be familiar with these terms.

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Definitions:

Credit Default Swap

A fiscal derivative or agreement enabling an investor to exchange or transfer their credit risk to another investor.

Recovery Value

The estimated amount that an asset can be sold for at the end of its useful life, or the value recovered from an investment or loan.

Protection Payment

A fee paid to receive protection from a financial loss in certain transactions, often associated with derivatives or insurance products.

Straight-Debt Value

This refers to the value of a company's bonds or debt if no conversion option exists, viewed as traditional fixed-income securities.