Question 11 1 pts Two parties enter into a 3-year credit default swap on a notional principal of $500 million. The CDS spread is 300 basis points, and the premium payments are made on the quarterly basis in arrears The reference entity goes bankrupt 11 months after the CDS contract is signed. The recovery rate is 30%. Assume that the risk-free interest rate is zero. what is the gain of the CDS buyer from this deal? Please express your answer in the unit of million dollars (without the dollar sign) Question 12 1 pts Which of the following statements is NOT true about the CDS spread? O Other things equal, CDS spread should be higher is the recovery rate is higher. Other things equal, CDS spread should be higher if the yield spread of the bonds issued by the reference entity is higher. CDS spreads generally go up when the macroeconomy is bad. CDS spread should be negatively correlated with the stock price of the reference company