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 counterparty denominated in another currency.
C)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,as well as 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 counterparty denominated in another currency.
D)none of the options

Question

Quizplus · Accepted Answer

A single-currency interest rate swap involves exchanging fixed and floating interest rates in the same currency, while a cross-currency interest rate swap involves exchanging debt obligations in different currencies. Option C describes both scenarios.

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