An interest rate swap in which interest accrues on one counterparty only on condition that the reference rate is (or remains) in a specified range. A accrual swap is virtually a set of binary caps and binary floors since the event of interest accruing is of a binary nature, i.e., either it occurs or not. If interest rate is above the floor rate, payment would need to be made. And if it is above the cap rate, payment would not be required.