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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Interest rate swap
How do we calculate the total benefit on an interest rate swap and how does this calculation differ from the calculation of currency swap(interest part)?
I explain swaps with an example in my free lectures on interest rate risk management.
Currency swaps in the exam are effectively just interest rate swaps together with a conversion of the principal at the beginning and end of the swap (and the questions explain at what exchange rates they conversion is to take place).
Understood. Thank you John!
You are welcome 🙂