An Interest Rate Swap in Which All the Fixed Payments

question 4

Multiple Choice

An interest rate swap in which all the fixed payments are paid in one lump sum is called a/an:

• A) amortised swap.
• B) term swap.
• C) zero-coupon swap.
• D) none of the given choices.

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Definitions:

Vasopressin

A hormone produced by the pituitary gland that helps regulate water balance in the body and constriction of blood vessels.

Angiotensin II

A peptide hormone that causes blood vessels to constrict, increasing blood pressure.

Parasympathetic Stimulation

Refers to the activation of the parasympathetic nervous system, which helps control bodily functions when at rest, such as stimulating digestion or reducing heart rate.

Chemoreceptors

Sensory receptors in the body that respond to chemical changes, such as oxygen and carbon dioxide levels in the blood.