The fixed portion of an interest rate swap. The absolute rate is a combination of the reference rate and the premium or discounted fixed percentage paid as part of the swap. For example, if the London Interbank Offered Rate is 3% and the swap is at a 6% premium, the absolute rate is 9%. If a swap involves different currencies, the absolute rate may reflect current exchange rates.
Browse by Subjects
American Psychological Association (APA):
Chicago Manual of Style (CMS):
Modern Language Association (MLA):