The main type of interest rate:
A) is a direct swap between two parties.
B) involves accompany entering into a swap with a financial intermediary whereby the company swaps fixed for floating payments.
C) is a basis swap.
D) involves a swap of floating for floating interest payments.

Question

Quizplus · Accepted Answer

The main type of interest rate discussed in the question is a swap between a company and a financial intermediary where the company swaps fixed for floating payments. This is known as an interest rate swap, and option B accurately describes this type of swap. Options A, C, and D do not accurately describe the main type of interest rate discussed in the question.

The Main Type of Interest Rate