ACI
3I0-012 · Question #25
Which of the following is true about interest rate swaps (IRS):
The correct answer is D. The fixed rate payer knows what his future payments will be at the outset of the swap. See the full explanation below for the reasoning.
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
How the community answered
(26 responses)- A4% (1)
- B8% (2)
- C19% (5)
- D69% (18)
Community Discussion
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