In a LIBOR-In-Arrears Swap, Which of the Following Is True

question 5

Multiple Choice

In a LIBOR-in-arrears swap, which of the following is true?

• A) The floating payment made on a date is the LIBOR rate on the previous payment date
• B) The floating payment on a date is the LIBOR rate two payment dates ago
• C) The floating payment on a date is the LIBOR rate on that date
• D) The floating payment on a date is the LIBOR rate on that date only when it is higher than the LIBOR rate on the previous payment date

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