An Agreement to Exchange Interest Payments Based on a Fixed

question 14

Multiple Choice

An agreement to exchange interest payments based on a fixed payment for those based on a variable rate (or vice versa) is known as a/an:

• A) forward rate agreement.
• B) interest rate future.
• C) interest rate swap.
• D) none of the above

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Definitions:

Property

Physical or intangible assets owned by an individual or business, including land, buildings, and intellectual property.

Residential Rental Property

Real estate property that is used for housing tenants and includes houses, apartments, and townhouses.

Nonresidential Real Property

Property used for business purposes, excluding those properties used for living accommodations.