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Section B (2 Mark)A bank plans to offer new subordinated notes in the open market...

Section B (2 Mark)

A bank plans to offer new subordinated notes in the open market next month but knows that its credit rating is being reviewed by a credit rating agency. The bank wants to avoid paying sharply higher credit costs. Which type of credit derivative contract would you most recommend for this situation?

A.

Credit linked note

B.

Credit option

C.

Credit risk option

D.

Total return swap

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