A fixed-for-floating nonamortizing currency swap is called a ______.
A) commodity swap
B) coupon swap
C) currency coupon swap
D) debt-for-equity swap
E) swaption

Question

Quizplus · Accepted Answer

A fixed-for-floating nonamortizing currency swap involves one party exchanging a fixed interest rate on a notional amount of a currency with another party who exchanges a floating interest rate on the same notional amount of a different currency. This type of swap is often used to manage currency risk and cash flows for international business transactions. The term "coupon swap" typically refers to a type of interest rate swap in which two parties exchange fixed and floating interest rate payments on a notional amount of debt, and is not directly related to currency swaps. The other answer choices are not relevant to the concept of a fixed-for-floating nonamortizing currency swap.

A Fixed-For-Floating Nonamortizing Currency Swap Is Called a ______