Suppose the Quote for a Five-Year Swap with Semiannual Payments

question 68

Multiple Choice

Suppose the quote for a five-year swap with semiannual payments is 8.50-8.60 percent. The means

• A)the swap bank will pay semiannual fixed-rate dollar payments of 8.50 percent against receiving six-month dollar LIBOR.
• B)the swap bank will receive semiannual fixed-rate dollar payments of 8.60 percent against paying six-month dollar LIBOR.
• C)both a and b
• D)none of the above

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Definitions:

Sale Of Goods Act

Legislation that governs the sale of goods, providing rights to buyers and obligations to sellers.

Common Law

A body of unwritten law derived from judicial decisions and case law, forming a significant part of the legal system in England, the United States, and other countries following the English tradition.

Food And Drugs Act

A law that sets standards for the safety and purity of food, drugs, cosmetics, and other related products to protect the public health.

Improperly Labelled

A situation where a product's packaging or labeling does not accurately describe its contents or fails to meet regulatory standards.