In Your Co Op Term At Cibc You Are Asked To Evaluate A Few Cds Deals The Contemp


Assume that when default occurs, it occurs at the end of the year. Please calculate the

fair CDS spread.


Compare the fair spreads from A) and B). Without doing calculations, please discuss

the size of the CDS spread if the swap payments are made at the beginning of each

year (for discussions here, assume defaults occur in the middle of the year).