Most interest rate swaps are set up for:
A) less than 6 months.
B) 6 months to 1 year.
C) 1 year to 10 years.
D) 11 to 20 years.
E) over 20 years.

Question

Quizplus · Accepted Answer

Interest rate swaps are commonly set up for longer-term periods, typically ranging from 1 year to 10 years or more. Short-term swaps, such as those for less than 6 months or 6 months to 1 year, are less common. Swaps for 11 to 20 years and over 20 years may occur but are less typical. Therefore, the best choice is C.

Most Interest Rate Swaps Are Set Up For