To Find the Swap Rate for a 3-Year Swap, You

question 82

Multiple Choice

To find the swap rate for a 3-year swap, you would

• A)take the arithmetic average of the 1-, 2-, and 3-year forward rates.
• B)take the geometric average of the 1-, 2-, and 3-year forward rates.
• C)bootstrap the LIBOR yield curve.
• D)none of the above

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Definitions:

Rightness

The quality or state of being morally correct or justified.

Capabilities Approach

A normative framework that evaluates social arrangements and public policies based on their ability to enable individuals to achieve functionings that they have reason to value.

Martha Nussbaum

A contemporary philosopher and academic who has contributed significantly to political philosophy, ethics, and the understanding of human emotions.

Ethics

The branch of philosophy that deals with questions about morality, including the formulation, justification, and recommendation of concepts of right and wrong behavior.