Examples of "single-currency interest rate swap" and "cross-currency interest rate swap" are:
A)fixed-for-floating rate interest rate swap, where one counterparty exchanges the interest payments of a floating-rate debt obligations for fixed-rate interest payments of the other counter party
B)fixed-for-fixed rate debt service (currency swap), where one counterparty exchanges the debt service obligations of a bond denominated in one currency for the debt service obligations of the other counter party denominated in another currency
C)a and b
D)none of these

Question

Quizplus · Accepted Answer

Option A describes a single-currency interest rate swap, where both parties exchange interest payments in the same currency based on either fixed or floating rates. Option B describes a cross-currency interest rate swap, where one party exchanges interest payments in one currency for interest payments in another currency based on fixed rates. Therefore, the correct answer is C.

Examples of "Single-Currency Interest Rate Swap" and "Cross-Currency Interest Rate