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In a typical equity swap, one leg will be the cash flows that represent the total return on an equity index or on a single

In a typical equity swap, one leg will be the cash flows that represent the total return on an equity index or on a single stock. The cash flows of the other leg are usually referenced to:

  1. The earnings yield on the index or on the stock
  2. A floating rate index such as Libor
  3. The dividend yield on the index or on the stock
  4. The 30-year U.S. Treasury bond rate

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