The price of an interest rate swap that involves the exchange of a fixed payment for a floating payment is most likely:
A: equal to its value at expiration.
B: set at initiation and constant over time.
C: affected by changes in the floating payment.
A: equal to its value at expiration.
B: set at initiation and constant over time.
C: affected by changes in the floating payment.
举一反三
- A coupon bond pays the owner of the bond a fixed interest payment (coupon payment) every year until the maturity date, when a specified final amount (face value or par value) is repaid. （ ） A: True B: False
- A mortgage payment would most likely be identified as a:
- Under a floating exchange rate, the government or central bank ties the official exchange rate to another country's currency or to the price of gold.
- In the forward market, the exchange rate is agreed on at the time of the currency contract, but payment is not made until the future delivery of the currency actually takes place.
- (I) A discount bond requires the borrower to repay the principal at the maturity date plus an interest payment. (II) A coupon bond pays the lender a fixed interest payment every year until the maturity date, when a specified final amount (face or par value) is repaid.