Question: Consider a two - year CDS with notional principal = 1 , 0 0 0 , 0 0 0 N = 1 , 0 0

Consider a two-year CDS with notional principal
=
1
,
000
,
000
N=1,000,000. The recovery rate is
=
30
%
R=30%. What is the contingent payment of the seller if default happens.

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