For the counterparties of an interest-rate swap to determine the amount and timing of thepayments they need to make to each other, they must specify

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The notional amount, type of interest rate, start date, and maturity date are the essential factors that determine the amount and timing of payments in an interest-rate swap. The notional amount represents the principal on which the interest payments are calculated, the type of interest rate defines the benchmark rate used for the swap, the start date determines when the swap begins to accrue interest, and the maturity date sets the endpoint for the swap. The spread and risk tolerance may influence the choice of the interest rate type, but they do not directly affect the payment calculations.

For the Counterparties of an Interest-Rate Swap to Determine the Amount