Which of the following statements about constant maturity swaps is not true?

Which of the following statements about constant maturity swaps is not true?




a. the CMT rate is linked to a U. S. treasury security of equivalent maturity
b. the typical maturity is 2 to 5 years
c. the maturity is constant
d. one rate is based on a security of a longer rate than the settlement period
e. the swap is a type of interest rate swap





Answer: C


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