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:

Overlap

The extent to which two or more things cover the same area or share common elements.

Frequency Distribution

A statistical analysis that shows how often each different value in a set of data occurs.

Original Observations

Refers to the initial set of data or measurements collected in a study or experiment before any manipulation or analysis.

Grouped

The categorization of data into intervals, often used in statistical analysis to simplify raw data sets.