Which of the following statements regarding swaps is correct?

a$.$ An interest rate swap involves exchanging interest payments in one currency

for interest payments in a second currency.

b$.$ The comparative advantage argument implies that the risk premium on a

floating rate loan should equal that on a fixed rate loan.

c$.$ An interest rate swap may be valued as a long position in a domestic currency

denominated bond and a short position in a foreign currency denominated

bond.

d$.$ A swap dealer in currency swaps faces interest rate risk and exchange rate risk

but no default risk.