The effective interest rate payable by a floating rate borrower who has become the fixed rate payer in a swap is the swap rate.

Name: The effective interest rate payable by a floating rate borrower who has become the fixed rate payer in a swap is the swap rate.
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Question

Quizplus · Accepted Answer

The swap rate is the fixed rate paid by the floating rate borrower in a swap. Therefore, the effective interest rate payable by the floating rate borrower who has become the fixed rate payer in a swap is indeed the swap rate.

The Effective Interest Rate Payable by a Floating Rate Borrower