Which One of the Following Formulae Is Correct

question 83

Multiple Choice

Which one of the following formulae is correct?

• A) Long a straight bond + pay fixed on a swap = long a synthetic Floating Rate Note
• B) Long a straight bond + pay floating on a swap = long a synthetic Floating Rate Note
• C) Short a straight bond + receive fixed on a swap = long a synthetic Floating Rate Note
• D) Short a straight bond + pay fixed on a swap = long a synthetic Floating Rate Note

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, describing how much individual data points differ from the mean.

Sample Mean

The average of a set of numerical values drawn from a sample of a population, used as an estimate of the population mean.

Margin Of Error

The amount of error that can be tolerated in the results of a poll or survey, indicating the potential deviation from the true population parameter.

Confidence Interval

A spectrum of numbers, extracted from sample observations, presumed to hold the value of a not yet identified population characteristic.