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Gennadij [26K]
3 years ago
15

Define credit default swap. ​

Business
1 answer:
KATRIN_1 [288]3 years ago
3 0

Answer:

Credit Default Swap (CDS) is a financial swap agreement or contract that allows investors to swap their credit risk with the credit risks of other investors.

Explanation:

Credit Default Swap is the most common form of credit derivative. It guarantees against bond risk and work like insurance policies.

If a lender is afraid of not being paid by his or her borrower, the lender can buy a CDS from another investor to offset the risk. The buyer of the CDS is required to makes some payments to the seller and in turn receive the loan repayment if the initial borrower defaults.

Third parties that sell CDS are usually banks, insurance companies and hedge funds.

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Which best describes what a market index does?
elixir [45]

Answer:

A market index is an indicator of the price movement of a certain sector in an economy. Statistical measures are used to average and calculate these numbers. Consumer price index, down Jones industrial average and s&p 500 are the most famous indices.

These factors affect the stock prices,

market performance

the company’s financial health

the economy

Overall market and industry performance allomg with.the functioning capacity of the overall economy has a tremendous impact on the stock prices as well. Mainly it affects the foreign investments.

Explanation:

4 0
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I hope it helps.
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8 0
4 years ago
Stable alliance networks will most often:_______. a. be used to enhance a firm's internal operations. b. emerge in declining ind
REY [17]

Answer and Explanation:

c. appear in mature industries where demand is relatively constant and predictable

3 0
4 years ago
An appraiser has just completed a search of the records for comparable residential properties that have sold within the last six
BigorU [14]
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4 years ago
An engineer who believes in "save now and play later" wanted to retire in 25 years with $1 million. At 10% per year interest, to
Talja [164]

Answer:

He must deposit $10,168.07 per year to reach the future value of $1,000,000.

Explanation:

Giving the following information:

Final value= 1,000,000

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We need to calculate the annual deposit necessary to reach the goal of $1,000,000.

To calculate the annual deposit, we need to use the following variation of the future value formula:

FV= {A*[(1+i)^n-1]}/i

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