Which of the Following Is Closest to the Bid-Offer Spread

question 19

Multiple Choice

Which of the following is closest to the bid-offer spread on the swap rate for a plain vanilla interest rate swap?

• A) 3 basis points
• B) 8 basis points
• C) 13 basis points
• D) 18 basis points

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Definitions:

Conglomerates

Large corporations that own a collection of different companies across various industries.

Seasonal Nature

Describes fluctuations in business activity, revenue, or profits at certain times of the year due to seasonal factors such as holidays or weather changes.

Fiscal Year Ends

The completion of a one-year, or 12-month, accounting period after which a company determines its financial performance.

Net Income

Total earnings of a business, arrived at by subtracting all expenses and taxes from its overall income.