Which of the Following Is Not an Interest-Rate Swap

question 17

Multiple Choice

Which of the following is not an interest-rate swap?

• A) A fixed-for-floating swap involving exchange of fixed interest rate payments in one currency for floating payments in the same currency but in which the swap NPV at inception is non-zero.
• B) A floating-for-floating swap in which one floating rate in a currency is exchanged for another floating rate in the same currency.
• C) A fixed-for-floating swap in which a fixed interest rate payment in one currency is exchanged for floating interest-rate payments in another currency.
• D) A fixed-for-floating swap involving exchange of fixed interest rate payments in one currency for floating payments in the same currency but in which the payments are computed on principal that is reduced in a pre-specified manner during the life of the swap.

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Definitions:

Pyroclastic Material

Fragmented material ejected during volcanic eruptions, including ash, bomb, lapilli, and volcanic blocks, which varies in size, shape, and composition.

Mudflows

Rapid downhill movement of water-laden earth materials, primarily composed of fine-grained soils and clays, which can cause significant erosion and damage.

Pyroclastic Flow

A hot, fast-moving and deadly mixture of gases, ash, and volcanic material produced by explosive eruptions.

Scoria

A highly vesicular, dark colored volcanic rock that may or may not contain crystals, typically formed from the cooling of lava.