Multiple Choice
Suppose the quote for a five-year swap with semiannual payments is 8.50-8.60 percent. The means
A) the swap bank will pay semiannual fixed-rate dollar payments of 8.50 percent against receiving six-month dollar LIBOR.
B) the swap bank will receive semiannual fixed-rate dollar payments of 8.60 percent against paying six-month dollar LIBOR.
C) both a and b
D) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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