Solved

An Interest Rate Swap Is a Succession of Forward Contracts

Question 11

True/False

An interest rate swap is a succession of forward contracts on interest rates arranged by two parties that allows for the exchange of fixed interest payments for floating payments; as such it allows a FI to place a long-term hedge.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions