Which of the following is true about interest rate swaps (IRS)?
A. The fixed rate and the floating rate payers know the cash value of their payments at the outset
B. There is exchange of principal at the start and at the end of the swap
C. Payment netting is only allowed through a third party
D. The notional amount of the swap is generally not exchanged between counterparties
Answer:D
Which of the following is true about interest rate swaps (IRS)?
A. The fixed rate and the floating rate payers know the cash value of their payments at the outset B. There is exchange of principal at the start and at the end of the swap C. Payment netting is only allowed through a third party D. The notional amount of the swap is generally not exchanged between counterparties