Swap payments are always either fixed or floating but never both.

Name: Swap payments are always either fixed or floating but never both.
Brand: Quizplus
Rating: 4.8 (45 reviews)

Question

Quizplus · Accepted Answer

Swap payments can be structured as a mix of fixed and floating payments, known as a basis swap. In a basis swap, one leg of the swap is based on a fixed rate and the other leg is based on a floating rate with a different index, such as LIBOR or EURIBOR. The difference between the two rates is the basis spread, and this spread can be positive or negative.

Swap Payments Are Always Either Fixed or Floating but Never