Which of the Following Is Not True About Interest Rate

question 81

Multiple Choice

Which of the following is not true about interest rate swaps?

• A) Payments are based on a notional principal.
• B) Floating rate payers profit if interest rates fall.
• C) Payments can be quarterly as well as semi-annually.
• D) Parities exchange debt obligations.
• E) Default risk is a possibility in the swaps market.

---

Definitions:

Regio-

A prefix used in chemistry to describe directionality or specific regions in molecules, particularly important in reactions with more than one possible outcome.

Major Organic

Refers to the primary organic (carbon-containing) compound or product resulting from a chemical reaction.

Alkene

A hydrocarbon containing at least one carbon-carbon double bond, part of the unsaturated hydrocarbon family.

Compound

A substance formed when two or more chemical elements are chemically bonded together.