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:

Frontal Lobe

Part of the brain located at the front of each cerebral hemisphere and involved in movements, decision making, problem solving, and planning.

Precentral Gyrus

A region of the frontal lobe in the brain responsible for voluntary muscle movements, containing the primary motor cortex.

Spinothalamic Pathway

A sensory pathway of the spinal cord that transmits pain and temperature sensations to the brain.

Decussation

The crossing over of nerve fibers or pathways from one side of the brain or spinal cord to the other, allowing for the exchange of information.