In a plain vanilla fixed-for-floating swap,
A) Fixed payments and floating payments must be made on the same date.
B) Fixed payments and floating payments may follow different payment cycles.
C) Fixed payments are made semi-annually while floating payments are quarterly.
D) Fixed payments are known ahead of time while the floating payment due on a particular date gets to be known only on that date.

Question

Quizplus · Accepted Answer

In a plain vanilla fixed-for-floating swap, the fixed and floating payments can follow different payment cycles.

In a Plain Vanilla Fixed-For-Floating Swap