In an Interest-Only Currency Swap

question 34

Multiple Choice

In an interest-only currency swap

• A)the counterparties must raise the actual notational principal in their home markets; then exchange it for the foreign currency they desire.They must also hedge with forward contracts on the currency.
• B)the counterparties periodically exchange the amortized portions of the notational principals.
• C)both a) and b)
• D)none of the above

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