An interest rate swap (specifically a LIBOR Function Swap) in which the floating rate is calculated using polynomial equations (e.g., a x2 + b x + c) so that custom-made payment profiles can be produced in order to respond to, or cope with, a very particular view of interest rate movements, within precisely defined rate limits or boundaries.
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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