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

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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.

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Options Futures And Other Derivatives

ISBN: 978-8120331693

6th Edition

Authors: Buss/redburn/guo

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Question Posted: Sep 19, 2024 06:02 AM

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

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Options Futures And Other Derivatives

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