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3I0-012 · Question #25

3I0-012 Question #25: Real Exam Question with Answer & Explanation

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Question

Which of the following is true about interest rate swaps (IRS):

Options

  • ABoth parties know what their future payments will be at the outset of the swap
  • BThere is payment of principal at maturity
  • CPayments are always made gross
  • DThe fixed rate payer knows what his future payments will be at the outset of the swap

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