An agreement to swap a fixed interest payment for a floating interest payment would be considered a/an:
A) currency swap.
B) forward swap.
C) interest rate swap.
D) none of the above

Question

Quizplus · Accepted Answer

An agreement to swap a fixed interest payment for a floating interest payment is a type of interest rate swap. A currency swap involves exchanging one currency for another, and a forward swap is not a commonly used financial term.

An Agreement to Swap a Fixed Interest Payment for a Floating