interest rate swap

Definition of "interest rate swap"
  1. An agreement between two parties to exchange different types of interest rates, usually a fixed rate and a floating rate, on a specific principal sum over a set period
How to use "interest rate swap" in a sentence
  1. The company used an interest rate swap to manage the risk associated with fluctuating rates.
  2. The bank offered an interest rate swap to mitigate potential losses due to rate changes.
  3. He entered into an interest rate swap to secure a fixed rate instead of a variable one.

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