Ah ok FC apprec. Thats what I was getting at. Thx.
cpk123 Wrote: ------------------------------------------------------- > LIBOR rates or EURIBOR rates is what is used on > Swaps. So the credit risk would be that of the > reference rate. The Fixed rate payer is buying a > bond - because he is receiving floating payments - > which is the coupon rate on the floating rate > bond-- his credit risk has nothing to do with that > of the swap. I picked B as well, but after reading this answer, I realized how stupid I was. Hopefully I can correct this for the test 