To determine the fixed rate on a swap, you would

To determine the fixed rate on a swap, you would 





a. use put-call parity
b. price it as the issuance of a fixed rate bond and purchase of a floating rate bond or vice versa
c. use the same fixed rate as that of a zero coupon bond of equivalent maturity
d. use the continuously compounded rate for the shortest maturity bond
e. none of the above




Answer: B


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