03_interestrateswaps [compatibility mode] 1-2

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1 Interest Rate Swaps

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Interest Rate Swaps

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Page 1: 03_InterestRateSwaps [Compatibility Mode] 1-2

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Interest Rate Swaps

Page 2: 03_InterestRateSwaps [Compatibility Mode] 1-2

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Interest Rate Swaps: Origin

�Today there exist an interest rate swap market where trillions of dollars (in notional principal) of swaps of fixed-rate loans for floating-rate loans occur each year.