An interest rate swap (IRS) in which the floating rate leg resets according to a predetermined schedule or a designated reference index. That is, the floating rate leg readjusts more frequently than the payments. For an index-linked swap, the floating rate payments are based on the average rate on the index rather than the rate on a single reset date.
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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