24-48 An contract that is a fixed-floating interest rate swap with a third party acting as an intermediary is known as
A)a pure credit swap.
B)a total return swap.
C)an off-market swap.
D)a plain vanilla swap.
E)an currency rate swap.

Question

Quizplus · Accepted Answer

A fixed-floating interest rate swap with a third party intermediary is a common type of swap contract known as a plain vanilla swap. This type of swap involves exchanging a fixed interest rate for a floating interest rate with a third party intermediary facilitating the transaction. Other types of swaps, such as credit swaps and total return swaps, involve different types of underlying assets and payment streams.

24-48 an Contract That Is a Fixed-Floating Interest Rate Swap