When there is a normal yield curve, the floating-rate payer will make the initial swap payments and the fixed-rate payer will make the later payments.

Question

Quizplus · Accepted Answer

In a swap, both the floating-rate payer and the fixed-rate payer make payments throughout the life of the swap, not just initially or later. The nature of their payments (floating or fixed) remains consistent over time.

When There Is a Normal Yield Curve, the Floating-Rate Payer