CFA Practice Question

There are 206 practice questions for this study session.

CFA Practice Question

An interest rate swap is identical to ______.

I. issuing a fixed-rate bond and using the proceeds to purchase a floating-rate bond
II. issuing a fixed-rate bond in one currency, converting the proceeds to the other currency, and using the proceeds to purchase a floating-rate bond denominated in the other currency
III. issuing a floating-rate bond and using the proceeds to purchase a fixed-rate bond
IV. issuing a floating-rate bond and using the proceeds to buy a stock index portfolio
Correct Answer: I and III

User Contributed Comments 4

User Comment
danlan2 II is not, it's more than interest rate swap
Masterkang II is a version of currency Swap
epiziL2 And IV is an equity swap
quanttrader I and III represent counterparties in the swap transaction
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