In an interest rate swap, In an interest rate swap. If a

In an interest rate swap

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Reference no: EM131917178

1. In an interest rate swap

a. Cash flows are determined in advance and paid at the end of each period

b. Cash flows are not determined in advance but paid at the end of each period

c. Cash flows are determined in advance and paid at the beginning of each period

d. Cash flows are not determined in advance and paid at the beginning of each period

2. If a firm believes interest rates will rise, then they are most likely to enter s swap as a:

a. Fixed rate receiver

b. Fixed rate payer

c. Floating rate sender

d. None of the above

3. Which of the following is true?

a. Speculators: want to transfer risk

b. Hedgers: want to take risk

c. Arbitragers: wants riskless profit with no invested capital.

Reference no: EM131917178

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