24-3 An interest rate swap is essentially a series of forward contracts on interest rates.

Name: 24-3 An interest rate swap is essentially a series of forward contracts on interest rates.
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An interest rate swap is a derivative contract in which two parties exchange cash flows based on a notional principal amount and predetermined fixed and floating interest rates. The exchange of cash flows is similar to a series of forward contracts on interest rates.

24-3 an Interest Rate Swap Is Essentially a Series of Forward