Which of the Following Is True When a Bank Uses

question 2

Multiple Choice

Which of the following is true when a bank uses OIS discounting for valuing a LIBOR-for-fixed swap

• A)The LIBOR/swap zero curve is calculated before the OIS zero curve
• B)The OIS zero curve is calculated before the LIBOR/swap zero curve
• C)The swap is valued using OIS forward rates and OIS discounting
• D)The forward rates are calculated from the bank's borrowing costs

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Definitions:

Cardiac Muscle

Specialized muscle tissue found only in the heart, capable of continuous, rhythmic contractions to pump blood throughout the body.

ANS

The Autonomic Nervous System, which controls involuntary bodily functions such as heart rate, digestion, and respiratory rate.

CNS

Central Nervous System, which includes the brain and spinal cord, responsible for processing and coordinating information in the body.

Efferent Neurons

Nerve cells that conduct impulses away from the central nervous system to muscles and glands.