17

In a fixed-to-floating interest rate swap:

Select one:

a. One party pays another party an amount calculated according to a floating interest rate on a notional principal, in exchange for an amount calculated on the basis of a fixed interest rate.

b. The amounts payable depend on a specified principal that is exchanged at the beginning between swap parties.

c. The floating rate party benefits if interest rates rise.

d. Only interest flows are exchanged until maturity, when the principal is exchanged according to the difference in the interest rates over the lifetime of the swap.

e. The fixed rate party benefits if interest rates fall.