Question
What is swap valuation? A.Find the fixed rate so that the value of the swap is zero at swap initiation. B.Find the current fixed rate
What is swap valuation?
A.Find the fixed rate so that the value of the swap is zero at swap initiation.
B.Find the current fixed rate of a swap that is similar to the existing swap.
C.Find the DCF value of swap future inflows and subtract from it the DCF value of swap future outflows.
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International Financial Management
Authors: Cheol S. Eun, Bruce G.Resnick
6th Edition
71316973, 978-0071316972, 78034655, 978-0078034657
