None Assume that on February 4th you buy a CDS that matures in five years on March 20th. The notional amount is $100 million, and the underlying is a high-yield bond. Assuming thecurrent quarte] has 90 days, what is the running premium?0000$125,000$1,250$12,500$1,250,000

Out of the choices you provided, the running premium is closest to $12,500.However, a more accurate…

Answered: Assume that on February 4th you buy a…

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 6FPE

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Assume that on February 4th you buy a CDS that matures in five years on March 20th. The notional amount is $100 million, and the underlying is a high-yield bond. Assuming the current quarte] has 90 days, what is the running premium? 0000 $125,000 $1,250 $12,500 $1,250,000