A swap that technically is a succession of forward contracts on interest rates is

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The question asks about a swap that is technically a succession of forward contracts on interest rates.
Option a: a commodity swap. This involves exchanging commodity prices or quantities (like oil or corn) and is not primarily based on interest-rate expectations, so it does not match the description of a series of forward rate contracts.
Option b: a credit swap. Credit swaps (such as credit default swaps) deal with credit risk transfer, not with interest-rate forwards or RSS-like rate exposure, so this is not correct for a sequence of forward rate contracts.
Option c: an interest rate swap. An interest rate swap is precisely a contract where a series of cash flows is exchanged, typically based on forward-looking interest rates (e.g., exchanging fixed rate payments for floating rate payments), effectively a succession of forward-rate agreements embedded in the deal. This aligns with the description of forward-rate contracts carried out over time.
Option d: a currency swap. A currency swap involves exchanging principal and interest payments in different currencies, addressing exchange-rate and interest-rate aspects across currencies, but the core mechanism is not simply a chain of forward contracts on rates themselves.
Option e: an equity swap. An equity swap exchanges exposure to equity returns, not interest-rate forwards; it targets stock or index performance rather than interest-rate movements.
In summary, the definition points to a structure that reproduces a stream of interest-rate forward decisions, which is characteristic of an interest rate swap, whereas the other options describe swaps tied to commodities, credit risk, multiple currencies, or equity performance rather than a chain of forward-rate agreements.

A swap that technically is a succession of forward contracts on interest rates is

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GHI Industries has issued $180 million worth of long-term bonds at a fixed rate of 14%. GHI Industries then enters into an interest rate swap where it will pay LIBOR and receive a fixed 6% on a notional principal of $180 million. After all these transactions are considered, GHI's cost of funds is:

The interest rate swap strategy of a firm with fixed rate debt and that expects rates to go up is to:

An agreement to swap a fixed interest payment for a floating interest payment would be considered a/an:

Part 1Interest rate swaps have an advantage over options and futures in that:Part 2 A. There is a large market for them. B. They can be written for a long time horizon. C. They are more liquid. D. They can limit interest rate risk.

AIG Co. expects interest rates to rise over the next 12 months. To hedge its floating-rate loan, the company should:

An interest rate swap involves:

Lockheed wants 5-year floating rate debt in USD. 5-year IRS = 4%. SOFR = 4.15%. It could issue 5-year fixed rate at 4.5% or 5-year FRNs at SOFR + 1%. What should it do?

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A swap that technically is a succession of forward contracts on interest rates is

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类似问题

GHI Industries has issued $180 million worth of long-term bonds at a fixed rate of 14%. GHI Industries then enters into an interest rate swap where it will pay LIBOR and receive a fixed 6% on a notional principal of $180 million. After all these transactions are considered, GHI's cost of funds is:

The interest rate swap strategy of a firm with fixed rate debt and that expects rates to go up is to:

An agreement to swap a fixed interest payment for a floating interest payment would be considered a/an:

Part 1Interest rate swaps have an advantage over options and futures in​ that:Part 2 A. There is a large market for them. B. They can be written for a long time horizon. C. They are more liquid. D. They can limit interest rate risk.

AIG Co. expects interest rates to rise over the next 12 months. To hedge its floating-rate loan, the company should:

An interest rate swap involves:

Lockheed wants 5-year floating rate debt in USD. 5-year IRS = 4%. SOFR = 4.15%. It could issue 5-year fixed rate at 4.5% or 5-year FRNs at SOFR + 1%. What should it do?

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希望你的学习变得更简单

Part 1Interest rate swaps have an advantage over options and futures in that:Part 2 A. There is a large market for them. B. They can be written for a long time horizon. C. They are more liquid. D. They can limit interest rate risk.