a __________ swaps,two parties exchange floating interest payments based on different reference rates.
A)basis
B)coupon
C)notional
D)forward rate

Question

Quizplus · Accepted Answer

The swap described involves exchanging floating interest payments based on different reference rates, which is the definition of a basis swap. A coupon swap involves exchanging fixed interest payments for floating interest payments. Notional refers to the principle amount used to calculate interest payments, and a forward rate is a predicted interest rate for a future point in time.

A __________ Swaps,two Parties Exchange Floating Interest Payments Based on Different