Which of the following is true about a credit default swap? A. All three of these...

Which of the following is true about a credit default swap?

A. All three of these potential answers here are true about a credit default swap.

B. It is basically the same as a mortgage backed security

C. It is insurance on an investment

D. It helps to reduce the defualt rate on mortgages

Solutions

Expert Solution

C. It is insurance on an investment

Credit default swap are a type of an insurance against the default risk by a particular company.

Rahul Sunny answered 1 year ago

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