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Basic Question 6 of 8
In an interest rate swap, the swap rate is the ______.
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
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
User Contributed Comments 1
| User | Comment |
|---|---|
| americade | the swap rate = the fixed payer contract rate |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
describe how swap contracts are similar to but different from a series of forward contracts
contrast the value and price of swaps
CFA® 2025 Level I Curriculum, Volume 5, Module 7.