Which of the Following Describes the Way a LIBOR-In-Arrears Swap

question 12

Multiple Choice

Which of the following describes the way a LIBOR-in-arrears swap differs from a plain vanilla interest rate swap?

• A) Interest is paid at the beginning of the accrual period in a LIBOR-in-arrears swap
• B) Interest is paid at the end of the accrual period in a LIBOR-in-arrears swap
• C) No floating interest is paid until the end of the life of the swap in a LIBOR-in-arrears swap, but fixed payments are made throughout the life of the swap
• D) Neither floating nor fixed payments are made until the end of the life of the swap

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