In a Typical Interest Rate Swap the Two Parties Will

question 43

True/False

In a typical interest rate swap the two parties will exchange a series of fixed payments for a series of payments that are linked to the level of interest rates.

---

Definitions:

Realizable Value

The estimated amount for which an asset can be sold, minus any selling costs, at a given point in time.

Materiality Constraint

An accounting principle that allows for the ignoring of accounting information that would not impact users’ decision-making due to its insignificance.

Factoring Accounts Receivable

The financial practice of selling accounts receivable to a third party at a discount to obtain immediate cash.

Installment Accounts Receivable

Receivables from sales where the customer makes regular payments over a period until the full purchase price is paid.