When one party is exchanging a payment based on an interest rate and the other party based on the return of some equity index, the swap agreement is called:
A) In interest rate swap.
B) An equity swap.
C) An interest rate-equity swap.
D) An index swap.
E) A currency swap.

Question

Quizplus · Accepted Answer

An interest rate-equity swap is a swap agreement in which one party exchanges a payment based on an interest rate and the other party exchanges a payment based on the return of some equity index.

When One Party Is Exchanging a Payment Based on an Interest