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

question 49

Multiple Choice

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

• A)floating-rate bond times the value of a fixed-rate bond.
• B)floating-rate bond plus the value of a fixed-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)floating-rate bond minus the value of a fixed-rate bond.

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Definitions:

Fairness

The quality of making judgments that are free from discrimination, bias, or favoritism, ensuring equal treatment for all.

Justice

The principle of fairness and the moral rightness of actions and laws, often pursued through the judicial system to resolve disputes and enforce laws.

Common Law

A legal system based on judicial precedents and case law rather than codified statutes, predominantly found in the UK, the US, and other countries with British influence.

Labor Laws

The set of legal regulations governing the rights and duties between employers and workers, including working conditions, wages, and work hours.