Question content area

Part $1$

Interest dash rate swapsInterest$$rate$$swaps

involve

A$.$the exchange of a set of payments in one currency for a set of payments in another currency

the exchange of a set of payments in one currency for a set of payments in another currencythe$$exchange$$of$$a$$set$$of$$payments$$in$$one$$currency$$for$$a$$set$$of$$payments$$in$$another$$currency

B$.$the exchange of one set of interest payments for another set of interest payments

the exchange of one set of interest payments for another set of interest paymentsthe$$exchange$$of$$one$$set$$of$$interest$$payments$$for$$another$$set$$of$$interest$$payments

C$.$

the exchange of one interest rate for another interest rate

D$.$

the exchange of one currency for another currency

Part $2$

The most common type of$$ interest$-$rate swap$$ specifies:

A$.$

the currency associated with the swap

B$.$

the credit rating of each counterparty

C$.$

the projected income of each counterparty

D$.$

the type of interest payments