A swap whereby two counterparties agree to exchange interest payments based on two interest rates and denominated in two different currencies for a predetermined period of time. One leg of the swap is calculated using a fixed rate denominated in one currency while the other is computed based on a floating rate denominated in another. Also, a floating rate could be exchanged for another floating rate, each denominated in a different currency.
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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