Examples of "single-currency interest rate swap" and "cross-currency interest rate swap" are:
A)fixed-for-floating rate interest rate swap, where one counterparty exchanges the interest payments of a floating-rate debt obligations for fixed-rate interest payments of the other counter party.
B)fixed-for-fixed rate debt service (currency swap), where one counterparty exchanges the debt service obligations of a bond denominated in one currency for the debt service obligations of the other counter party denominated in another currency.
C)both a and b
D)none of the above

Question

Quizplus · Accepted Answer

Option A describes a single-currency interest rate swap, and option B describes a cross-currency interest rate swap. Therefore, option C describes both of these types of swaps. Option D is incorrect because both A and B are valid examples of interest rate swaps.

Examples of "Single-Currency Interest Rate Swap" and "Cross-Currency Interest Rate