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    Exam 21: Interest Rate Swaps, Cross-Currency Swaps and Credit Default
  5. Question
    When Two Parties Agree to Exchange a Set of Interest
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When Two Parties Agree to Exchange a Set of Interest

Question 23

Question 23

Multiple Choice

When two parties agree to exchange a set of interest rate cash flows based on a notional principal,this transaction is called:


A) cross-hedging.
B) interest rate swap.
C) cash flow swap.
D) fixed-for floating swap.

Correct Answer:

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