Question: A fixed - for - fixed currency swap Is equivalent to a portfolio of FRAs Is equivalent to a long position in one bond and

A fixed-for-fixed currency swap
Is equivalent to a portfolio of FRAs
Is equivalent to a long position in one bond
and a short position in another bond
Is worth the same whether or not
principals are exchanged
Involves no exchange of principals at the
beginning of its life
A fixed-for-fixed currency swap Is equivalent to a portfolio of FRAs

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