The Value of a Pay-Fixed,receive-Floating Interest Rate Swap Is Found

question 29

Multiple Choice

The value of a pay-fixed,receive-floating interest rate swap is found as the value of a

• A)floating-rate bond minus the value of a fixed-rate bond.
• B)fixed-rate bond minus the value of a floating-rate bond.
• C)floating-rate bond minus the value of another floating-rate bond.
• D)fixed-rate bond minus the value of another fixed-rate bond.
• E)none of the above correctly identify how this value is found.

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Definitions:

External

Refers to factors, influences, or stimuli that originate outside of an individual.

Locus of Control

Refers to an individual's belief system regarding the causes of his or her experiences, and the factors to which that person attributes success or failure.

Native Americans

The indigenous peoples of the United States, including both Native American tribes and Alaska Natives.

External Factors

Elements outside an individual that can influence their behavior, decisions, and well-being, such as the environment, social interactions, and cultural norms.