The following information relates to Questions 16-29

-In a typical interest rate swap contract, the swap rate is best described as the interest rate for the:
A) fixed-rate leg of the swap.
B) floating-rate leg of the swap.
C) difference between the fixed and floating legs of the swap.

Question

The following information relates to Questions 16-29
 
-In a typical interest rate swap contract, the swap rate is best described as the interest rate for the:
A) fixed-rate leg of the swap. 
B) floating-rate leg of the swap. 
C) difference between the fixed and floating legs of the swap.

Quizplus · Accepted Answer

The swap rate in an interest rate swap contract refers to the fixed interest rate exchanged between the two parties, which is applied to the notional amount for the fixed-rate leg of the swap.

The Following Information Relates to Questions 16-29