A. notion buyer
B. notion seller
C. swap buyer
D. swap seller
✅ The correct answer is option C.
In interest rate swap transaction, party who pays fixed payments of interest is classified as swap buyer. A swap is a derivative contract through which two parties exchange the cash flows or liabilities from two different financial instruments. Most swaps involve cash flows based on a notional principal amount such as a loan or bond, although the instrument can be almost anything.
In interest rate swap transaction, party who pays fixed payments of interest is classified as swap buyer. A swap is a derivative contract through which two parties exchange the cash flows or liabilities from two different financial instruments. Most swaps involve cash flows based on a notional principal amount such as a loan or bond, although the instrument can be almost anything.