Explain why the fixed-rate payer in an interest rate swap is happy when interest rates go up.
posted by Eschenfelder at 5:14 PM
Money and Banking Spring 2006
The following posts are the questions which appeared on last semester's exams. Students should use the comment sections to answer the questions and respond to the posts of other students.
Thursday, January 25, 2007
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1 Comments:
A fixed rate payer in an interest rate swap is happy when interest rates go up because he/she is locked into a fixed rate that cannot go up during the term, even if variable rates go up.
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