3. Assume 5-year U.S. Treasury notes yield 2.5% and the 5-year credit default swap (CDS) price for the United States Government as the underlying reference credit is 14.5 bps p.a. Based upon this information alone, you can conclude: A. CDS sellers are assuming U.S. Government debt has a default probability over the next five years of .725% B. You could buy this credit default protection today for less than .68% of the notional amount C. CDS sellers must be using these swaps on U.S. Government debt to hedge corporate debt positions D. CDS buyers have bid up prices on these swaps out of an abundance of caution 3. Assume 5-year U.S. Treasury notes yield 2.5% and the 5-year credit default swap (CDS) price for the United States Government as the underlying reference credit is 14.5 bps p.a. Based upon this information alone, you can conclude: A. CDS sellers are assuming U.S. Government debt has a default probability over the next five years of .725% B. You could buy this credit default protection today for less than .68% of the notional amount C. CDS sellers must be using these swaps on U.S. Government debt to hedge corporate debt positions D. CDS buyers have bid up prices on these swaps out of an abundance of caution