Interest Rate Swaps Allow Both Counterparties To

question 79

Multiple Choice

Interest rate swaps allow both counterparties to:

• A) reduce interest expenses.
• B) avoid repayment of the notional principal.
• C) rearrange the balance sheet.
• D) pay a floating rate of interest on their debt.

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Definitions:

Standard Deviation

This statistical index measures how spread out the numbers in a data set are.

Confidence Interval

An expanse of values, garnered from sample analysis, envisioned to embrace the value of an undetected population parameter.

Mean Score

The average score calculated by adding all individual scores together and then dividing by the number of scores.

Confidence Interval

A span of numbers obtained from sample observations that probably encompasses the value of an unspecified population characteristic.