A Constant Maturity Swap Has Which of the Following Characteristics

question 19

Multiple Choice

A constant maturity swap has which of the following characteristics

• A)the swap maturity is held constant at a fixed number of years
• B)the floating payment is usually based on the rate on a Treasury note
• C)the swap calls for all payments to be made at its maturity
• D)the floating payment and the maturity are both constant
• E)none of the above

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Definitions:

Operations

The day-to-day activities involved in running a business, producing goods, or providing services, focusing on efficiency and effectiveness of the process.

Internal Locus

The belief that individuals control their own destiny and outcomes are primarily the result of their own efforts.

Trust Instincts

Reliance on one's innate intuition or feelings in making decisions, especially in situations where complete information is not available.

Personality

The combination of characteristics or qualities that form an individual's distinctive character.