The Asset Swap Spread Is

question 12

Multiple Choice

The asset swap spread is

• A)The spread of the fixed rate over current Libor in an interest-rate swap.
• B)The spread over Libor on the floating leg of a swap to exchange the return from a commodity for a floating rate.
• C)The spread over Libor on the floating leg of an interest-rate swap combined with a fixed coupon asset,such that the package is at par.
• D)The spread over Libor on the floating leg of an interest-rate swap combined with a credit default swap,such that the package is at zero value.

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Definitions:

Epi-

A prefix meaning 'upon', 'on', 'over', 'near', or 'at', often used in medical and scientific terminology to denote position or relationship.

Onc/o

A prefix in medical terminology denoting relation to tumors or cancer.

Combining Form

A form used in the construction of medical and scientific terminology, typically a root with a vowel at the end that allows it to be connected to other terms.

Tumor

An abnormal mass of tissue that forms when cells grow and divide more than they should or do not die when they should.