ACI
3I0-012 · Question #306
Which one of the formulae below is correct?
The correct answer is D. Long a FRN + pay floating on a swap = long a synthetic straight bond. See the full explanation below for the reasoning.
Question
Which one of the formulae below is correct?
Options
- ALong a FRN + pay fixed on a swap = long a synthetic straight bond
- BLong a FRN + receive floating on a swap = long a synthetic straight bond
- CLong a FRN + pay floating on a swap = short a synthetic straight bond
- DLong a FRN + pay floating on a swap = long a synthetic straight bond.
How the community answered
(14 responses)- A14% (2)
- B7% (1)
- C7% (1)
- D71% (10)
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