In a Vanilla Interest Rate Swap

Multiple Choice

In a vanilla interest rate swap:

A) the amounts payable between parties depend on a specified principal that is exchanged at the outset.
B) one party pays another party an amount calculated according to a floating interest rate on a notional principal, in exchange for an amount calculated on the basis of a fixed interest rate.
C) only interest flows are exchanged until maturity, when the principal is exchanged according to the difference in the interest rates over the lifetime of the swap.
D) the amounts payable between parties depends on a specified principal that is exchanged at the beginning and at the end.