In an interest-rate swap, the participating companies actually exchange interest payments.

Name: In an interest-rate swap, the participating companies actually exchange interest payments.
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In an interest-rate swap, two parties exchange interest payments based on a notional amount of principal. One party typically pays a fixed interest rate while the other pays a variable interest rate. The exchange of these payments allows each party to effectively "swap" their interest rate exposure.

In an Interest-Rate Swap, the Participating Companies Actually Exchange Interest