Question: The compensation from a CDS can come from: Multiple Choice the CDS holder delivering the defaulted bond to the CDS issuer in return for the

The compensation from a CDS can come from:

Multiple Choice

the CDS holder delivering the defaulted bond to the CDS issuer in return for the bond's par value, and the CDS issuer paying the swap holder the difference between the par value of the bond and the bond's market price.

the CDS holder delivering the defaulted bond to the CDS issuer in return for the bond's par value.

None of the options are correct.

the federal government paying off on the insurance claim.

the CDS issuer paying the swap holder the difference between the par value of the bond and the bond's market price.

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