A contract that is a fixed-floating interest rate swap with a third party acting as an intermediary is known as
A)a pure credit swap.
B)a total return swap.
C)an off-market swap.
D)a plain vanilla swap.
E)an currency rate swap.

Question

Quizplus · Accepted Answer

A plain vanilla swap is a standard interest rate swap where one party exchanges a fixed interest rate for a floating interest rate with a third party acting as an intermediary.

A Contract That Is a Fixed-Floating Interest Rate Swap with a Third