Which of the following is one of the main factors that determine the quoted fixed rates for swaps?

Question

Quizplus · Accepted Answer

Counterparties' default risk is one of the main factors that determine the quoted fixed rates for swaps. The higher the counterparties' default risk, the higher the fixed rate for the swap. The size of the notional amount may affect the pricing of the swap, but it is not one of the main factors. The time of the taxation year and the swap dealers' ability to add large spreads are not relevant factors in determining the quoted fixed rates for swaps.

Which of the Following Is One of the Main Factors