Multiple Choice
The value of a pay-fixed,receive-floating interest rate swap is found as the value of a
A) floating-rate bond minus the value of a fixed-rate bond.
B) fixed-rate bond minus the value of a floating-rate bond.
C) floating-rate bond minus the value of another floating-rate bond.
D) fixed-rate bond minus the value of another fixed-rate bond.
E) none of the above correctly identify how this value is found.
Correct Answer:
Verified
Correct Answer:
Verified
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