Which of the following about interest rate swaps is NOT correct?
A) An interest rate swap allows a company to change the net characteristics of its interest rate cash flows.
B) An interest rate swap is based on interest rates worked out on a notional principal.
C) If a company has a fixed-rate loan it can enter into an interest rate swap whereby the bank lender will pay it a variable rate to net out the fixed rate from the company.
D) A cross-currency swap involves the exchange and interest payments based on a fixed exchange rate.
Correct Answer:
Verified
Q11: When two parties exchange their respective interest
Q12: A financial agreement between two parties to
Q13: An interest rate swap is:
A) another name
Q14: The first interest rate swap involving the
Q15: In relation to an interest rate swap
Q17: When two parties agree to exchange a
Q18: The main type of interest rate:
A) is
Q19: The main type of interest rate:
A) is
Q20: An interest rate swap is similar to
Q21: A key motive for companies and financial
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