Interest-rate swaps are:
A) exchanges of equity securities for debt securities.
B) agreements between two parties to exchange periodic interest-rate payments over some future period.
C) agreements involving swapping of option contracts.
D) agreements that allow both parties to convert floating interest rates to fixed interest rates.

Question

Quizplus · Accepted Answer

Interest-rate swaps are financial agreements between two parties to exchange periodic interest-rate payments, typically involving one party paying a fixed rate and the other paying a floating rate, over a specified period.

Interest-Rate Swaps Are