58 937
Assignments Done
Successfully Done
In March 2018
Your physics homework can be a real challenge, and the due date can be really close — feel free to use our assistance and get the desired result.
Be sure that math assignments completed by our experts will be error-free and done according to your instructions specified in the submitted order form.
Our experts will gladly share their knowledge and help you with programming homework. Keep up with the world’s newest programming trends.

Answer on Finance Question for kit

Question #1463
Which of the following statements about interest rate swaps is FALSE?
A) A plain vanilla interest rate swap is a fixed rate for a variable rate swap
B) The parties agreeing to a swap typically make no margin deposit
C) The notional principal amount is used to determine the amount of the interest payments
D) The counterparties exchange the notional principal at initiation and termination while only net
interest rate payments are exchanged on the settlement dates
Expert's answer
Tha Statement D is FALSE. In a plain vanilla interest rate swap, one
counterparty agrees to pay a sequence of fixed-rate interest payments and to
receive a sequence of floating-rate interest payments. Notional Principal Amount
is the predetermined dollar amount on which the exchanged interest payments are
based. In an interest rate swap, the principal amount is not actually exchanged
between the counterparties, rather, interest payments are exchanged based on a
"notional amount” or “notional

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


No comments. Be first!

Leave a comment

Ask Your question