In a 'plain vanilla' swap,the variable reference rate is generally the:

A) bank bill swap rate
B) 90-day dealer bill rate
C) 180-day dealer bill rate
D) 5 -year bond yield

Question

In a 'plain vanilla' swap,the variable reference rate is generally the:

A) bank bill swap rate
B) 90-day dealer bill rate
C) 180-day dealer bill rate
D) 5 -year bond yield

Quizplus · Accepted Answer

For a 'plain vanilla' swap,a fixed for floating swap,the parties to the swap agree on the term of the swap,the fixed rate to apply over the swap period and the variable reference rate.In Australia,the variable reference rate is generally the bank bill swap rate.

In a 'Plain Vanilla' Swap,the Variable Reference Rate Is Generally