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    Derivatives and Risk Management Study Set 1
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    Exam 13: Interest Rate Forwards and Options
  5. Question
    The Convention for Calculating Interest on an Interest Rate Derivative
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The Convention for Calculating Interest on an Interest Rate Derivative

Question 11

Question 11

True/False

The convention for calculating interest on an interest rate derivative is to multiply the notional principal times the payoff function times 90 over 360 or 365.

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