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Pure Credit Swaps Are Swaps by Which an FI Receives

Question 35

Multiple Choice

Pure credit swaps are swaps by which an FI receives the:


A) par value of the loan on default in return for paying a periodic swap fee
B) current value of the loan on default in return for paying a periodic swap fee
C) residual value of the loan on default in return for paying a periodic swap fee
D) outstanding interest payments on the loan on default in return for paying a periodic swap fee

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