Magneto Investments is a European-based hedge fund that frequently invests in countries all over the world. Magneto's financial statements are reported in euros. Magneto recently entered into a swap agreement to pay ABC Bank a stream of U.S. dollar cash flows based on a 5% fuxed rate in exchange for another stream of U.S. dollar cash flows based on 1 year LBOR. The annual swap settlements are based on a $10 million principal amount. The swap agreement between Magneto and its counterparty is considered an equity swap a currency swap an interest rate swap a credit default swap