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By Convention,a Swap Buyer on an Interest Rate Swap Agrees

Question 7

Multiple Choice

By convention,a swap buyer on an interest rate swap agrees to


A) periodically pay a fixed rate of interest and receive a floating rate of interest.
B) periodically pay a floating rate of interest and receive a fixed rate of interest.
C) swap both principal and interest at contract maturity.
D) back both sides of the swap agreement.
E) act as the dealer in the swap agreement.

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