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LOS a: Distinguish between the pricing and valuation of swaps.
Q1. At the inception of a market-rate plain vanilla swap, the value of the swap to the fixed-rate payer is:
A) zero.
B) either positive or negative.
C) positive.
Q2. Over the life of a swap, the price of the swap:
A) fluctuates with changes in the yield curve.
B) does not change.
C) is approximately equal to the market value of the swap.
Q3. The price and value of a plain vanilla interest-rate swap are:
A)equal in equilibrium.
B)only equal at the inception of a swap contract.
C)never equal.
Q4. The price of an interest rate swap is the:
A) cost to purchase a swap.
B) fixed rate of interest.
C) market value of the swap.
Q5. The fixed-rate on a semiannual 2-year interest rate swap is closest to the:
A) current 180-day T-bill rate.
B) coupon rate on a 2-year par bond with the same credit risk as the reference rate.
C) coupon rate on a 2-year par bond with the same credit risk as the fixed-rate payer. | 
发表于 2009-3-28 17:51
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