In a currency swap, the effective interest rate on the money raised is known as the
A) notional principal
B) all-in cost
C) right of offset
D) yield to call

Question

Quizplus · Accepted Answer

In a currency swap, the all-in cost represents the effective interest rate on the money raised, which includes the underlying interest rate and any additional fees or costs associated with the swap. Notional principal refers to the amount of the underlying assets being exchanged, right of offset refers to the ability to offset or cancel out positions in a portfolio, and yield to call refers to the yield earned on a bond if it is called, or redeemed, before maturity.

In a Currency Swap, the Effective Interest Rate on the Money