A swap agreement created through the synthesis of two swaps differing in duration for the purpose of fulfilling the specific time frame needed of an investor

Related MCQs

• The type of swap agreement which gives seller the chance to terminate swap at any time before maturity.
• A swap where principal amount decreases over prespecified points of time over the life time of swap
• A swap agreement that allows the purchaser to fix the duration of received flows on aswap.
• A swap agreement that pays and resets at the same time.
• A swap that takes into consideration daily variation of market rates within specific range.
• Swaps whose notional accretes when a certain floating rate,often a different rate from the one used to pay,lies within a range.
• The disadvantage of swaps is that they
• Which measure is used to indicate the maximum loss that an investor could incur on an exposure at a point in time, determined at a certain confidence level.
• When Swap is combined with Option it is called
• A swap that pays certain fixed amount if the rate is above or below a certain level.