[NinaSun]

Which of the following risks are inherent in an interest rate swap agreement?

I. The risk of exchanging a lower interest rate for a higher interest rate

II. The risk of nonperformance by the counterparty to the agreement

a. Both I and II

b. Neither I nor II

c. II only

d. I only

The answer is “a”. But I think “exchanging a lower interest rate for a higher interest rate” should be a good thing not a risk

AUD-74,75 11/2014
REG-80 04/2015
FAR-74, 91 11/2015
BEC-79 08/2015