A company enters into a total return swap where it receives the return on a corporate bond paying a coupon of 5 and pays LIBOR Explain the difference between this and a regular swap where 5 is exchanged for LIBOR ...

In the case of a total return ...

A company enters into a total return swap where it receives the return on a corporate bond

Question:

A company enters into a total return swap where it receives the return on a corporate bond paying a of 5% and pays LIBOR. Explain the difference between this and a regular swap where 5% is exchanged for LIBOR.
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...