The most popular floating rate in swaps is
A) LIBOR.
B) the Treasury note rate.
C) the prime rate.
D) the six-month Treasury bill rate.

Question

Quizplus · Accepted Answer

LIBOR (London Interbank Offered Rate) is the most common floating rate used in swaps. It is the interest rate at which banks can borrow funds from other banks in the London interbank market. As such, it is widely used as a benchmark rate in financial markets and is a reliable indicator of short-term interest rates. The other choices (Treasury note rate, prime rate, and six-month Treasury bill rate) are also commonly used rates, but are not as prevalent as LIBOR in the swap market.

The Most Popular Floating Rate in Swaps Is