The swap spread is quoted as 50 bps. If the five-year US Treasury bond is yielding 2%, the rate paid by the fixed payer in a five-year interest rate swap is closest to:

A. 0.50%.
B. 1.50%.
C. 2.50%.

Ans: C. 2.50%.

Business

You might also like to view...

The researcher strives to minimize question bias, defined as the ability of a question's wording or format to influence respondents' answers

Indicate whether the statement is true or false

Business

Expansion selling encompasses which of the following?

A) partial-line selling B) reselling C) suggestion selling D) undercutting the competition E) cross-purpose selling

Business