Which of the Following Statements About Diff Swaps Is True

Multiple Choice

Which of the following statements about diff swaps is true?

A) they involve interest payments in separate currencies
B) they are based on the difference between interest rates in two countries
C) they are based on the difference between interest rates of different maturities
D) the notional principal reduces throughout the life of the swap
E) the notional principal increases throughout the life of the swap