14 - 14 Student: _ 1. The term interest rate swap A. refers...

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14Student: ___________________________________________________________________________1.The terminterest rate swapA. refers to a "single-currency interest rate swap" shortened to "interest rate swap"B.involves "counterparties" who make a contractual agreement to exchange cash flows at periodicintervalsC. can be "fixed-for-floating rate" or "fixed-for-fixed rate"D. All of the above
2.Examples of "single-currency interest rate swap" and "cross-currency interest rate swap" are:
3.The primary reasons for a counterparty to use a currency swap are:
4.The size of the swap market is
5.Which combination of the following statements is true about a swap bank?(i) it is a generic term to describe a financial institution that facilitates swaps between counterparties(ii) it can be an international commercial bank(iii) it can be an investment bank(iv) it can be a merchant bank(v) it can be an independent operatorA. (i) and (ii)B. (i), (ii) and (iii)C. (i), (ii), (iii) and (iv)D. (i), (ii), (iii), (iv) and (v)
6.A swap bank
7.In the swap market, which position potentially carries greater risks, broker or dealer?
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Chapter 18 / Exercise 14
International Financial Management
Madura
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8.Suppose the quote for a five-year swap with semiannual payments is 8.50—8.60 percent. The means:

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Term
Fall
Professor
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Tags
Interest, Interest Rate, International Finance, Forward contract, Interest rate swap, Forward price, Swap Bank
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International Financial Management
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Chapter 18 / Exercise 14
International Financial Management
Madura
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