Which one of the following formulae is correct?

The correct answer is A. Long a straight bond + pay fixed on a swap = long a synthetic Floating Rate Note. Exam Questions, Study Guides, Practice Tests. Lead the way to help you pass any IT Certification exams, 100% Pass Guaranteed or Full Refund. Especially Cisco, CompTIA, Citrix, EMC, HP, Oracle, VMware, Juniper, Check Point, LPI, Nortel, EXIN and so on. Our Slogan: First Test…

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Question

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

How the community answered

(33 responses)

A
73% (24)
B
3% (1)
C
9% (3)
D
15% (5)

Explanation

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Topics

#interest rate swap#fixed income#FRN#synthetic instruments

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