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on 15-Feb-2015 (Sun)

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Flashcard 149671886

Tags
#asset-swap #finance
Question
In the market asset swap, the net upfront payment is zero. Instead the notional on the Libor side equals the price of the bond and there is [...] at maturity.
Answer
an exchange of notionals

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In the market asset swap, the net upfront payment is zero. Instead the notional on the Libor side equals the price of the bond and there is an exchange of notionals at maturity.

Original toplevel document

Asset swap - Wikipedia, the free encyclopedia
een floating side coupons, the floating payment received is half of the Libor plus asset swap spread. This feature prevents the calculated asset swap spread from jumping as we move forward in time through coupon dates. Market Asset Swap[edit] <span>In the market asset swap, the net upfront payment is zero. Instead the notional on the Libor side equals the price of the bond and there is an exchange of notionals at maturity. See also[edit] Government debtInterestSwap (finance) References[edit] ^ "Asset Swap - Investopedia". Investopedia. Archived from the original on 12 April 2009. Retrieved 2009-0