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When LIBOR Is Used as the Discount Rate

Question 5

Multiple Choice

When LIBOR is used as the discount rate:


A) The value of a swap is worth zero immediately after a payment date
B) The value of a swap is worth zero immediately before a payment date
C) The value of the floating rate bond underlying a swap is worth par immediately after a payment date
D) The value of the floating rate bond underlying a swap is worth par immediately before a payment date

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