It is common to include
A)both the interest and principal payments in an interest rate swap.
B)only the interest payments in a currency swap.
C)both the interest and principal payments in a currency swap.
D)only the principal payments in an interest rate swap.

Question

Quizplus · Accepted Answer

In a currency swap, both the interest and principal payments are exchanged in two different currencies. In contrast, an interest rate swap involves exchanging only interest payments in the same currency. Therefore, option C is the correct choice.

It Is Common to Include