AFP
CTP · Question #409
(Topic 5) Upon entering into an interest rate swap with a notional principal of $10,000,000, what is the initial amount of money the counterparties must exchange at the beginning of the swap?
The correct answer is A. $0. See the full explanation below for the reasoning.
Question
- (Topic 5)
Upon entering into an interest rate swap with a notional principal of $10,000,000, what is the initial amount of money the counterparties must exchange at the beginning of the swap?
Options
- A$0
- B$5,000,000
- CThe future value of $10,000,000
- D$10,000,000 discounted
How the community answered
(33 responses)- A82% (27)
- B12% (4)
- C3% (1)
- D3% (1)
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