In a plain vanilla interest rate swap:
A) |
one party pays a floating rate and the other pays a fixed rate, both based on the notional amount. | |
B) |
payments equal to the notional principal amount are exchanged at the initiation of the swap. | |
C) |
each party pays a fixed rate of interest on a notional amount. | |
A plain vanilla swap is a fixed-for-floating swap. |