If a Broker Refers to "The Payer of 5-Year Euro

question 116

Multiple Choice

If a broker refers to "the payer of 5-year euro at 4.12", what is this party doing?

• A) Paying a fixed rate of 4.12% per annum on a 30/360 basis over 5 years in euros through an interest rate swap in exchange for receiving a floating rate of 6-month Euribor on an actual/360 basis reset semi-annually and paid in arrears.
• B) Paying a fixed rate of 4.12% per annum on an actual/actual basis over 5 years in euros through an interest rate swap in exchange for receiving a floating rate of 6-month Euribor on an actual/360 basis reset semi-annually and paid in arrears.
• C) Paying a 5-year euro deposit and receiving a rate of interest of 4.12% on an actual/360 basis. Taking a 5-year euro deposit and paying a rate ol interest of 4.12% on an actual/360 basis.

---

Definitions:

Programmatic Barriers

Obstacles within programs or services that hinder accessibility or participation, often due to design or policy.

Urban

Relating to, characteristic of, or situated in a city or town, often associated with higher population density and vast cultural, infrastructural, and economic centers.

Suburban

Pertaining to a residential area located on the outskirts of a city, characterized by lower population density than urban areas but more than rural areas.

Collaborating

The process of two or more people or organizations working together towards a common goal, often characterized by mutual respect and cooperation.