An interest rate swap with both sides paying a floating rate is called a
A)plain vanilla swap
B)two-way swap
C)floating swap
D)spread swap
E)basis swap

Question

Quizplus · Accepted Answer

A basis swap is a type of interest rate swap where both parties exchange interest payments based on different floating rate indices, hence the term "basis swap" is used to describe a swap with both sides paying a floating rate.

An Interest Rate Swap with Both Sides Paying a Floating