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3I0-012 · Question #745

3I0-012 Question #745: Real Exam Question with Answer & Explanation

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Question

Which one of the following formulae is correct?

Options

  • ALong a straight bond + pay fixed on a swap = long a synthetic Floating Rate Note
  • BLong a straight bond + pay floating on a swap = long a synthetic Floating Rate Note
  • CShort a straight bond + receive fixed on a swap = long a synthetic Floating Rate Note
  • DShort a straight bond + pay fixed on a swap = long a synthetic Floating Rate Note

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