(Topic 2) The exchange of a fixed interest rate cash flow for a floating interest rate cash flow with both interest rates in the same currency is an example of:

The correct answer is A. a vanilla swap. See the full explanation below for the reasoning.

Question

(Topic 2)

The exchange of a fixed interest rate cash flow for a floating interest rate cash flow with both interest rates in the same currency is an example of:

Options

Aa vanilla swap.
Ca basis-rate swap.
Dan interest rate cap.

How the community answered

(46 responses)

A
85% (39)
C
7% (3)
D
9% (4)

Community Discussion

No community discussion yet for this question.

Full CTP Practice