CFA Practice Question

There are 206 practice questions for this study session.

CFA Practice Question

In an interest rate swap, the swap rate is the ______.

A. fixed rate that the fixed-rate payer agrees to pay over the life of the swap
B. reference rate (e.g., LIBOR) used to calculate the floating rate
C. floating rate that the fixed-rate receiver agrees to pay over the life of the swap
D. spread between the fixed rate and floating rate. Both parties use the spread at the end of each period to calculate the net payment
Correct Answer: A

User Contributed Comments 1

User Comment
americade the swap rate = the fixed payer contract rate
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