Amortizing currency swaps
A)the debt service exchanges decrease periodically through time as the hypothetical notational principal is amortized.
B)incorporate an amortization feature in which periodically the amortized portions of the notational principals are re-exchanged.
C)both a and b
D)none of the above

Question

Quizplus · Accepted Answer

Amortizing currency swaps incorporate an amortization feature in which periodically the amortized portions of the notational principals are re-exchanged. This results in a decrease in debt service exchanges over time. Therefore, both option A and B are correct.

Amortizing Currency Swaps