A pure yield pickup swap involves a switch from a low-coupon bond to a higher-coupon bond of similar quality and maturity.

Question

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A pure yield pickup swap is used to increase the yield on a portfolio by swapping a low-coupon bond for a higher-coupon bond of similar quality and maturity. This allows the investor to obtain a higher annual interest payment, increasing their yield or return on investment.

A Pure Yield Pickup Swap Involves a Switch from a Low-Coupon