1 why is notional principal often exchanged in a currency, Ask an Expert

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1 .Why is notional principal often exchanged in a currency swap but not in an interest rate or equity swap? Why would the parties to a currency swap choose not to exchange the notional principal ?

2 .Explain how the following types of swaps are analogous to transactions in bonds.

a. Interest rate swaps

b. Currency swaps.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92080315

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