A plain vanilla interest-rate swap is an agreement to exchange a series of periodic payments, one computed at a fixed rate and the other at
A) A floating rate indexed to a money-market rate in the same currency (e.g., Libor) .
B) A floating rate linked to the return on any financial index, e.g., an equity index.
C) A floating rate indexed to a money-market rate in the same or a different currency.
D) A floating rate indexed to a commodity (e.g., gold) price.
Correct Answer:
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Q1: The main difference between the "short-form" and
Q2: A bank makes long-term fixed-rate loans, and
Q4: Which of the following is not true
Q5: An important difference between a floating-rate note
Q6: The main difference between the "short-form" and
Q7: Choose the most appropriate of the following
Q8: An amortizing interest-rate swap is one in
Q9: You enter into a $100 million notional
Q10: In a plain vanilla fixed-for-floating swap,
A) Fixed
Q11: Firm A can borrow at 4%
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