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Sagot :
A swap that involves the exchange of one set of interest payments for another set of interest payments is called a(n) interest rate swap.
An interest rate swap is a futures contract that exchanges a future interest payment stream for another payment stream based on a specified principal amount. Interest rate swaps typically exchange fixed interest rates for floating interest rates or vice versa to reduce or increase exposure to interest rate fluctuations or to obtain slightly lower interest rates than would have been possible without the swap. accompanied.
Swaps also involve exchanging one type of floating rate for another, known as a basis swap. An interest rate swap is a futures contract that exchanges a future interest payment stream for another payment stream based on a specified principal amount.
Interest rate swaps may exchange fixed or floating interest rates to reduce or increase exposure to interest rate fluctuations. Interest rate swaps are sometimes called plain vanilla swaps because they are the original swap product and often the simplest swap product.
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