In a Fixed-For-Floating Interest Rate Swap

question 58

Multiple Choice

In a fixed-for-floating interest rate swap:

• A)Counter-party A pays Counter-party B an amount calculated according to a floating interest rate in return for an amount calculated on the basis of a fixed interest rate.
• B)The amounts payable depend on the notional principal.
• C)Only interest flows are involved until maturity,when the principal is exchanged based on the difference in the amounts calculated according to a floating interest rate and a fixed interest rate.
• D)Counter-party A pays Counter-party B an amount calculated according to a floating interest rate in return for an amount calculated on the basis of a fixed interest rate and the amounts payable depend on the notional principal.

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