What is the coupon impact of using a more risky reference, Financial Management

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What is the coupon impact of using a more risky reference

A. What is the coupon impact of using a more risky reference entity? (high? lower? no change? Why?)

B. If the CLN carries a floating coupon (adjusts each quarter to changes in interest rates in general) what impact is there on the initial hedges and on risks? Presume that the buyer of the CLN only wants credit risk.

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Financial Management: What is the coupon impact of using a more risky reference

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