Which of the Following Is Not a Typical Provision of an Interest

question 22

Multiple Choice

Which of the following is not a typical provision of an interest rate swap?

• A) the notional principal value to which the interest rates are applied to determine the interest payments involved
• B) the fixed interest rate
• C) the formula and type of index used to determine the floating interest rate
• D) the underwriter of the bond
• E) All of the above are provisions of an interest rate swap.

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Definitions:

Restrictive Covenant

Clauses in a deed or lease that limit what the owner of the property or tenant can do with the property.

Public Policy

The unwillingness of the courts to enforce rights that are contrary to the general interests of the public.

Cottage Resort

A vacation facility composed of small, cozy dwellings in a scenic or rural setting, offering a relaxed atmosphere.

Registry System

A system for recording information and transactions, typically for assets like land, vehicles, or intellectual property.