Interest-rate swaps are: Answer a. Exchanges of equity securities for debt securities b. Agreements involving swapping of option contracts c. Agreements that allow both parties to convert floating interest rates to fixed interest rates. d. Agreements between two parties to exchange periodic interest-rate payments over some future period
Interest-rate swaps are: Answer a. Exchanges of equity securities for debt securities b. Agreements involving swapping of option contracts c. Agreements that allow both parties to convert floating interest rates to fixed interest rates. d. Agreements between two parties to exchange periodic interest-rate payments over some future period
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Interest-rate swaps are:
Answer
a. Exchanges of equity securities for debt securities
b. Agreements involving swapping of option contracts
c. Agreements that allow both parties to convert floating interest rates to fixed interest rates.
d. Agreements between two parties to exchange periodic interest-rate payments over some future period
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