In a currency swap, interest on a principal in one currency is exchanged for interest on a
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In a currency swap, interest on a principal in one currency is exchanged for interest on a principal in another currency. The principals in the two currencies are exchanged at the end of the life of the swap. Why is the credit risk on a currency swap greater than that on an interest rate swap?
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The value of a currency swap is liable to d...View the full answer
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