Q531
In interest rate swap transaction, party who pays floating payments of interest is considered as
A.
notion buyer
B.
notion seller
C.
swap buyer
D.
swap seller
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
In interest rate swap transaction, party who pays floating payments of interest is considered as swap seller. A swap is an agreement between two parties to exchange sequences of cash flows for a set period of time.