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3I0-013 · Question #68

3I0-013 Question #68: Real Exam Question with Answer & Explanation

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Question

Which of the following is trueabout interest rate swaps (IRS)?

Options

  • AThe fixed rate and the floating rate payers know the cash value of their payments at the outset
  • BThere is exchange of principal at the start and at the end of the swap
  • CPayment netting is only allowed through a third party
  • DThe notional amount of the swap is generally not exchanged between counterparties

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