In interest rate swap transaction, the party who pays the fixed payments of interest is classified as __________?
Correct answer: C. swap buyer
- A. notion buyer
- B. notion seller
- C. swap buyer
- D. swap sellerHire An Accountant
Explanation
The swap buyer is conventionally the party that pays the fixed interest rate and receives the floating rate. The swap seller takes the opposite position.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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