1. Which of the following regarding interest rate swaps is false:

A. The fixed rate leg of the swap can be valued using FRAs

B. The fixed rate is equivalent to the risk free rate over the life of the swap

C. Their bid/offer spreads are typically tighter than the bid/offer spreads of virtually all corporate bonds

D. The outstanding notional amount of interest rate swaps exceeds the combined outstanding amount of all other types of derivatives