In a typical interest rate swap contract, the swap rate is best described as the interest rate for the:

	A.	fixed-rate leg of the swap.
	B.	floating-rate leg of the swap.
	C.	difference between the fixed and float legs of the swap.

Are these statements correct?

Statement 1: The yield to maturity of a coupon bond is the expected rate of return on a bond if the bond is held to maturity, there is no default, and the bond and all coupons are reinvested at the original yield to maturity.

Statement 2: Treasury curves and swap curves can differ because of differences in their credit exposures, liquidity, and other supply/demand factors.

	A.	Both statements are correct.
	B.	Both statements are not correct.
	C.	Only statement 1 is correct.
	D.	Only statement 2 is correct.