Which of the Following Statements About Constant Maturity Swaps Is

question 40

Multiple Choice

Which of the following statements about constant maturity swaps is not true?

• A)the CMT rate is linked to a U.S.treasury security of equivalent maturity
• B)the typical maturity is 2 to 5 years
• C)the maturity is constant
• D)one rate is based on a security of a longer rate than the settlement period
• E)the swap is a type of interest rate swap

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