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Which of the Following Describes the Five-Year Swap Rate

Question 16

Multiple Choice

Which of the following describes the five-year swap rate?


A) The fixed rate of interest which a swap market maker is prepared to pay in exchange for LIBOR on a 5-year swap
B) The fixed rate of interest which a swap market maker is prepared to receive in exchange for LIBOR on a 5-year swap
C) The average of A and B
D) The higher of A and B

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