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1. When value of a swap is negative to one of the parties, the other party faces credit risk. (True / False) 2. if interest

1. When value of a swap is negative to one of the parties, the other party faces credit risk. (True / False)

2. if interest rate over two year turns out to be 7% instead of 6%, which party is at a loss? the one making the fixed payment or the one making the floating payment?

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