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Basic Question 0 of 7
An interest rate swap is identical to ______.
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
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
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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Colin Sampaleanu
Learning Outcome Statements
evaluate practices, policies, and conduct relative to the CFA Institute Code of Ethics and Standards of Professional Conduct;
explain how the practices, policies, and conduct do or do not violate the CFA Institute Code of Ethics and Standards of Professional Conduct.
CFA® 2025 Level II Curriculum, Volume 6, Module 45.