Question: Choose the correct statement regarding a simple interest rate swap: Swap is a contract where one side pays a floating rate and the other side

Choose the correct statement regarding a simple interest rate swap:

Swap is a contract where one side pays a floating rate and the other side pays a fixed rate; notional principal amount for both sides can be the same or different, as stated in the contract.

Swap can be viewed as a series of forward agreements on interest rates.

Swap contract consists of 2 loans made to each other by the two parties of the transaction.

At swap initiation future payments for neither of the two sides are known.

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