Question
The concept of interest rate swaps involves
counterparties who want to:Solution
An interest rate swap is a type of financial derivative contract in which two parties agree to exchange interest rate cash flows over a specified period. • Typically, one party pays a fixed interest rate, while the other pays a floating interest rate, based on a notional principal. • It allows companies to manage interest rate risk, such as protecting against rising floating rates or reducing financing costs. • Importantly, interest rate swaps do not involve exchanging debt for stock or altering loan maturities. Those are separate financial arrangements. Thus, the primary purpose of an interest rate swap is to exchange fixed and floating rate commitments within the same currency.
Two capacitors of 6 µF and 3 µF are connected in series and a potential difference of 90 V is applied. The energy stored in the system is:
The time period of a second’s pendulum is –
Which conservation law is violated in nuclear beta decay if neutrinos are not considered?
The work done by a centripetal force on an object moving in a circular path is:
The functioning of a quartz crystal in a watch is based on which principle?
Which mirror always forms virtual, erect, and diminished image?
What type of rays are used in a CT scan to visualize the internal structures of the human body?
The refractive indices of quartz crystal for right handed and left handed circularly polarized light of wavelength 762.9 nm are 1.5391 and 1.5392 respe...
The focal length of a concave mirror is 20 cm. Where should an object be placed to get an image of the same size?
Which of the following is a characteristic of sound waves?
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