Explain why a swap is effectively a series of forward contracts. Suppose a firm enters a swap

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Explain why a swap is effectively a series of forward contracts. Suppose a firm enters a swap agreement with a swap dealer. Describe the nature of the default risk faced by both parties.

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Corporate Finance

ISBN: 978-0077861759

10th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Question Posted: Aug 28, 2014 10:30 AM

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Explain why a swap is effectively a series of forward contracts. Suppose a firm enters a swap

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A swap contract is an agreement between parties to exchange assets over s...View the full answer

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