24-14 Once a fixed-floating interest rate swap agreement has been negotiated under no-arbitrage conditions,both parties to the swap agreement know with certainty the exact amount of their respective cash flows.

Question

Quizplus · Accepted Answer

The cash flows in a fixed-floating interest rate swap depend on future floating interest rates, which are not known with certainty at the time of the agreement.

24-14 Once a Fixed-Floating Interest Rate Swap Agreement Has Been