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Interest rate swap

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Interest rate swap

  • This topic has 3 replies, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • May 24, 2021 at 11:20 am #621606
    kalpesh09
    Member
    • Topics: 9
    • Replies: 9
    • ☆

    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)?

    May 24, 2021 at 2:51 pm #621630
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    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).

    May 24, 2021 at 7:21 pm #621664
    kalpesh09
    Member
    • Topics: 9
    • Replies: 9
    • ☆

    Understood. Thank you John!

    May 25, 2021 at 8:21 am #621694
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Interest rate swap’ is closed to new replies.

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