Which of the following factors does affect the valuation of a fixed notional equity swap that pays the equity return in exchange for a fixed interest rate payment?

Question

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The valuation of a fixed notional equity swap is primarily affected by the interest-rate term structure, as it determines the present value of the fixed interest payments. Expected equity price growth and interest rate volatility structure do not directly affect the valuation of the swap.

Which of the Following Factors Does Affect the Valuation of a Fixed