In a ____________________________,counterparty A pays interest to counterparty B at a fixed rate and in a designated currency and counterparty B pays interest to counterparty A at a fixed rate and in a different designated currency.

Question

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In a cross-currency swap, each counterparty agrees to pay interest in a different currency. This allows each counterparty to access financing in a foreign currency without having to take on the foreign exchange risk themselves. The other options, currency swap, forward contract, and interest rate swap, do not involve payment in different currencies by each counterparty.

In a ____________________________,Counterparty a Pays Interest to Counterparty B at a Fixed