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To Determine the Fixed Rate on a Swap,you Would

Question 10

Multiple Choice

To determine the fixed rate on a swap,you would


A) use put-call parity
B) price it as the issuance of a fixed rate bond and purchase of a floating rate bond or vice versa
C) use the same fixed rate as that of a zero coupon bond of equivalent maturity
D) use the continuously compounded rate for the shortest maturity bond
E) none of the above

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