Rachel

Swap Rate.

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A swap rate is the rate at which two currencies are exchanged. The swap rate is used to calculate the interest rate differential between two currencies. The swap rate is also known as the cross-currency rate or cross-rate. What are swaps with example? A swap is an agreement between two parties to exchange certain financial … Read more

Arbitrage Bond Definition.

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An arbitrage bond is a type of municipal bond that is issued in order to take advantage of differences in interest rates. The proceeds from the sale of the bond are invested in a portfolio of other bonds and securities that are expected to generate a higher return than the interest rate on the arbitrage … Read more