What does it mean the value of the fixed rate side, does that mean the value of the swap to the fixed rate side? , hence a value of $0.99768 means the fixed side loses? Say if the value of the floating side was $1.01066, that means the floating side wins?
A practice exam question in Schweser book 1. Page 65 # 117.I was confused by their wording.
Thanks作者: benbenxiong 时间: 2011-7-13 14:49
Value to the fixed rate side means value to the fixed rate payer.
NO EXCUSES作者: sameeragarwal 时间: 2011-7-13 14:49
vinniepaz730 Wrote:
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> What does it mean the value of the fixed rate
> side, does that mean the value of the swap to the
> fixed rate side? , hence a value of $0.99768 means
> the fixed side loses? Say if the value of the
> floating side was $1.01066, that means the
> floating side wins?
>
> A practice exam question in Schweser book 1. Page
> 65 # 117.I was confused by their wording.
>
> Thanks
No you cannot say that. It depends on who is receiving the fixed/floating and paying fixed/floating. Lets assume that I am receiving fixed and paying floating
