In an Interest Rate Swap,the Party Who Is the Fixed-Rate

question 14

Multiple Choice

In an interest rate swap,the party who is the fixed-rate payer:

• A) currently has fixed-rate obligations, but prefers floating.
• B) currently has floating-rate obligations, but prefers fixed.
• C) receives a fixed-rate payment if interest rates increase.
• D) pays a floating-rate payment if interest rates increase.

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Definitions:

Fallopian Tube

Tubes that extend from either side of the uterus, through which eggs travel from the ovaries to the uterus.

Opening

An entrance or aperture in a structure that provides access or allows the passage of objects, fluids, or light.

Region

An area or division, especially part of a country or the world having definable characteristics but not always fixed boundaries.

Pelvis

The lower part of the torso, enclosed by the pelvic bones and containing reproductive and urinary organs.