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Akimi4 [234]
2 years ago
12

By convention, a swap buyer on an interest rate swap agrees to act as the dealer in the swap agreement. hold both principal and

interest to contract maturity. periodically pay a fixed rate of interest and receive a floating rate of interest. back both sides of the swap agreement. periodically pay a floating rate of interest and receive a fixed rate of interest.
Business
1 answer:
lawyer [7]2 years ago
8 0

Answer:

periodically pay a fixed rate of interest and receive a floating rate of interest.

Explanation:

The interest rate (rate of return) can be defined as the percentage of interest or dividends earned on money that is invested.

In Financial accounting, a return refers to the amount of profit generated by an investor on an investment over a specific period of time.

Basically, the interest rate which is typically expressed as a percentage of the initial costs of an investment can either be a gain or a loss on an investment. Therefore, a positive rate of return on an investment over a specific period of time, simply means that an investor is making a profit (gains) while a negative rate of return on an investment over a specific period of time, indicates that the investor is running at a loss.

By convention, a swap buyer on an interest rate swap agrees to periodically pay a fixed rate of interest and receive a floating rate of interest.

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