In interest rate swap transaction, the party who pays the floating payments of interest is considered as __________?
Correct answer: D. swap sellerCompare Futures Brokers
- A. notion buyer
- B. notion seller
- C. swap buyer
- D. swap sellerCompare Futures Brokers
Explanation
In the usual swap convention, the swap buyer pays the fixed rate and receives the floating rate, while the swap seller pays the floating rate and receives the fixed rate. Thus, the floating-rate payer is the swap seller.
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