Which of the Following Describes the Five-Year Swap Rate

question 1

Multiple Choice

Which of the following describes the five-year swap rate?

• A) The fixed rate of interest which a swap market maker is prepared to pay in exchange for LIBOR on a 5-year swap
• B) The fixed rate of interest which a swap market maker is prepared to receive in exchange for LIBOR on a 5-year swap
• C) The average of A and B
• D) The higher of A and B

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Definitions:

Effervesces

Reacts with acids to release carbon dioxide gas, often indicating the presence of carbonate minerals like calcite.

Metallic Luster

A type of shine from the surface of a mineral that resembles the appearance of polished metal, indicating a certain mineral composition.

Dilute HCl

A solution made by mixing hydrochloric acid with water, commonly used in chemical analysis and experiments to test for the presence of carbonate minerals.

Crystal Form

The external shape displayed by a crystal or a group of crystals that grew together, reflecting the symmetrical arrangement of the internal lattice.