financial markets question helpppp!!!?

G

Greg

New member
If you swapped a floating rate payment for a fixed rate payment, would
you gain or lose if interest rates unexpectedly rose? Explain briefly.
What would be the situation if the rise in interest rates was expected before you
entered the swap contract. Explain briefly.
 
The price of a note at any time reflects the current market assessment of the course of rates over the life of the note. Therefore, the present value of the fixed payment note would fall if interest rates rose greater than that assessment.
 
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