In a currency swap, both principal and interest payments are usually included as part of the swap
Question:
In a currency swap, both principal and interest payments are usually included as part of the swap agreement. For interest rate swaps, it is usual to include only interest rate payments. The reason for this is that both principal and interest are exposed to foreign exchange risk. LO.1
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial Markets And Institutions
ISBN: 9781259919718
7th Edition
Authors: Anthony Saunders, Marcia Cornett
Question Posted: