ACI
3I0-013 · Question #193
What is the "spread" in an interest rate swap (IRS)?
The correct answer is D. The difference between the swap rate and the benchmark government yield. See the full explanation below for the reasoning.
Question
What is the "spread" in an interest rate swap (IRS)?
Options
- AThe interest rate differential between the fixed and floating leg of the swap
- BThe brokerage fee for an interest rate swap transaction
- CThe payment made when a swap is terminated
- DThe difference between the swap rate and the benchmark government yield
How the community answered
(28 responses)- A11% (3)
- B4% (1)
- C4% (1)
- D82% (23)
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