Multiple Choice
A plain vanilla interest-rate swap is an agreement to exchange a series of periodic payments, one computed at a fixed rate and the other at
A) A floating rate indexed to a money-market rate in the same currency (e.g., Libor) .
B) A floating rate linked to the return on any financial index, e.g., an equity index.
C) A floating rate indexed to a money-market rate in the same or a different currency.
D) A floating rate indexed to a commodity (e.g., gold) price.
Correct Answer:
Verified
Correct Answer:
Verified
Q18: You enter into a $100 million notional
Q19: An equivalent description of the holding of
Q20: If the (1,1.5)-year forward rate is
Q21: You have a $50 cash flow that
Q22: You have entered into a swap where
Q24: Who is likely to bear the greater
Q25: You enter into a $100 million
Q26: The US Treasury market day-count convention is<br>A)
Q27: Your firm can borrow fixed at 8%
Q28: In a plain vanilla fixed-for-floating swap,<br>A) Fixed