Counterparties to an Interest Rate Swap Exchange Both Interest Payments

question 13

True/False

Counterparties to an interest rate swap exchange both interest payments and principal amounts.

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Definitions:

Rate of Return

The rate of return is a measure of the profitability of an investment, calculated as the percentage of the total amount of returned income to the amount of the investment’s initial cost.

Annual Dividend

An annual profit sharing from a corporation to its shareholders, usually in the form of a payment.

Future Value

The future financial worth of an asset or cash that equates to a designated current sum.

Cash Flows

The whole summation of cash transfers affecting a business's in and outflows, prominently affecting its quick access to funds.