Total return swap in terms of hedging credit and market risk

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1. A 7-year bond with 6% annual coupons has an effective annual yield rate of 8.5% and a 7-year bond with 10% annual coupons has an effective annual yield rate of 8%. Calculate the effective annual 7-year spot rate.

2. Discuss the difference between Credit Default Swap and Total Return Swap in terms of hedging credit risk and market risk

3. What are some of the waysa for-profit Healthcare firm can increase it's equity?

Reference no: EM132067038

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