A variant of the fixed-for-floating interest rate swap in which the floating rate payer doesn’t pay the periodically observed reference rate but continues to receive the fixed rate. Instead of the periodical floating payment, the floating rate of interest accumulates with compounding and is paid in a lump sum at the maturity of the swap.
Derivatives
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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