Which of the Following Is NOT True About Interest Rate

question 14

Multiple Choice

Which of the following is NOT true about interest rate swaps?

• A) Payments are based on a notional principal.
• B) Floating rate payers profit if interest rates fall.
• C) Payments can be quarterly as well as semi-annually.
• D) Parities exchange debt obligations.
• E) Default risk is a possibility in the swaps market.

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