The Principal in an Interest Rate Swap Is

question 72

Multiple Choice

The principal in an interest rate swap is:

• A) always transferred from the originator to the counterparty of the swap.
• B) is usually held by a clearinghouse to guarantee payment.
• C) usually borrowed from a third party.
• D) is not borrowed, lent, or exchanged. It just serves as the basis for the calculation of cash flows.

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