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expain in easy way Interest Rate Swap: Typicat uses of an Interest Rate Swap: Converting a liability from fixed rate to floating rate floating rate
expain in easy way Interest Rate Swap: Typicat uses of an Interest Rate Swap: Converting a liability from fixed rate to floating rate floating rate to fixed rate Converting an investment from fixed rate to floating rate floating rate to fixed rate Interest Rate Swap: Example of an IRS (HULL, PG. 150): Agreement by Microsoft and Intel where Microsoft receives 6-month LIBOR & pays a fixed rate of 5% per annum every 6 months for 3 years on a notional principal of $100 million LIBOR Intel Microsoft 5% - LIBOR = London Inter-Bank Offer Rate and is interest rate on USD deposited in bank outside the US, usually for 3 to 6 months
expain in easy way
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