- This topic has 1 reply, 2 voices, and was last updated 1 year ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Sir may i ask is swap is a OTC arrangement which not flexibility in lapse or exercise?
Because i read from question Pault sep/dec 2016 state that company can choose let the arrangement lapse.Thus i not so sure on my understanding about swap.
You have misunderstood the examiners answer.
The swap is for 4 years will continue for 4 years and then stop. However the loan lasts for 10 years and so at the end of 4 years they have the choice of either finding a new swap arrangement or stop swapping and start paying at floating rate.
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.