Examples of "Single-Currency Interest Rate Swap" and "Cross-Currency Interest Rate

question 47

Multiple Choice

Examples of "single-currency interest rate swap" and "cross-currency interest rate swap" are:

• A)fixed-for-floating rate interest rate swap, where one counterparty exchanges the interest payments of a floating-rate debt obligations for fixed-rate interest payments of the other counter party.
• B)fixed-for-fixed rate debt service (currency swap), where one counterparty exchanges the debt service obligations of a bond denominated in one currency for the debt service obligations of the other counter party denominated in another currency.
• C)both a and b
• D)none of the above

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Definitions:

Major Classes

Categories or groups into which business assets, liabilities, equity, income, and expenses are divided for organizational and reporting purposes.

20-Year Period

Denotes a time frame of twenty years, often used in the context of loans, investments, or planning horizons.

Book Value

The net value of a company's assets minus its liabilities, often in relation to an individual asset or the company as a whole.

Plant Assets

Long-term tangible assets used in the operation of a business and not expected to be converted to cash in the short term.