Question $14$

Which of the following describes the five$-$year swap rate?

The rate that can be earned over five years from a series of short$-$term loans to $A-$rated companies

The rate on a five$-$year loan to an A$-$rated company

The rate that can be earned over five years from a series of short$-$term loans to AA$-$rated companies

The rate on a five$-$year loan to an AA$-$rated company