Response to the following questions:
1. Explain the similarity between a swap and a forward contract.
2. Distinguish between a swap seller and a swap buyer.
3. Give two reasons why credit swaps have been the fastestgrowing form of swaps in recent years.
4. What is a total return swap?
5. How does a pure credit swap differ from a total return swap?
6. Why is the credit risk on a swap lower than the credit risk on a loan?