Why does it make sense that interest rate swaps involve an exchange of net payments, while currency

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Why does it make sense that interest rate swaps involve an exchange of net payments, while currency swaps exchange all cash flows?

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Introduction to Corporate Finance

ISBN: 978-1119171287

4th edition

Authors: Laurence Booth, Sean Cleary, Ian Rakita

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Question Posted: Nov 01, 2017 06:34 AM

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Why does it make sense that interest rate swaps involve an exchange of net payments, while currency

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In an interest rate swap the payoff or loss is the difference between the fixed rate ...View the full answer

Introduction to Corporate Finance

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