Q1. Q. How do swaps and forward contracts share similarities while also differing from each other?

Q2. For a $100 million equity swap with semiannual payments and an initial stock index level of 2000, one party pays a fixed rate of 5.5 percent assuming 30 days per month and 360 days in a year. On the first payment date, if the stock index is at 2173, determine the net swap payment, and specify which party makes the payment.

Q3: Compare and contrast the similarities and differences between Forward Rate Agreements (FRAs) and interest rate swaps.

Q 4. How can a portfolio manager rationalize the acquisition of an inverse floating-rate note?