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While visiting one of my friends at a local bank, I overheard a high ranking bank executive tell one of his colleagues that a plain

While visiting one of my friends at a local bank, I overheard a high ranking bank executive tell one of his colleagues that a plain vanilla interest
rate swap is a contract where two counterparties exchange cash flows based on the differences in the variation of two floating-rate indices where the payments are computed on an amortizing notional principal amount and can be used to hedge the interest rate risk for an institution with more rate sensitive assets than rate sensitive liabilities. Comment on this statement and explain why it is right or wrong.

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