NO.PZ2023032703000072
问题如下：
Which of the following statements best describes how a single-name CDS contract is priced at inception?
选项：
A.If the reference entity’s credit spread trades below the standard coupon rate, the CDS contract will be priced at a premium above par because the protection buyer pays a “below market” periodic coupon.
If the reference entity’s credit spread trades above the standard coupon rate, the CDS contract will be priced at a discount to par because the protection seller effectively receives a “below market” periodic premium.
Similar to fixed-rate bonds, CDS contracts are initially priced at par with a fixed coupon and a price that changes over time as the reference entity’s credit spreads change.
解释：
B is correct. For example, if the reference entity’s credit spread trades at 1.50% versus a standard coupon rate of 1.00%, the CDS contract will be priced at a discount equal to the 0.50% difference multiplied by the effective CDS spread duration times the contract notional.
Under A, the contract is priced at a premium to par because the protection buyer is receiving an “above market” periodic premium.
https://class.pzacademy.com/qa/134470 ：这里提到的是 upfront premium=(fixed coupon-spread)*ED；CDS price=1+upfront premium
https://class.pzacademy.com/qa/147797： 这里提到的是 upfront premium=(fixed coupon-spread)*ED；CDS price =1-upfront premium
https://class.pzacademy.com/qa/147186： 这里提到的是 upfront premium=（spread-fixed coupon）*ED；CDS price=1+(fixed coupon-spread)*duration
能否解释下？哪个才是正确的知识点。
