Why do arbitrage profits rarely exist in interest rate swap pricing?
What will be an ideal response?
Interest rate swaps can be equated to borrowing at a variable interest rate in order to purchase a fixed rate bond. The pricing of these instruments are set in high volume markets and correspond with bond yield curves.
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Which statement accurately describes a tenancy in common?
A. Interests must be equal. B. There is an equal right of possession. C. Interests must be acquired at the same time. D. Interests must be acquired from the same documents.
In which of the following loans would a borrower most likely be required to purchase private mortgage insurance?
A. A conventional loan in which the borrower has less than 20% for the down payment. B. A guaranteed loan secured by a qualified veteran. C. An adjustable rate mortgage. D. A conventional loan purchased by Fannie Mae.