Absolute Rate

外汇网2021-06-19 14:09:05 51

The fixed portion of an interest-rate swap, expssed as a percentage rather than as a pmium or a discount to a reference rate.

|||The absolute rate is a combination of the reference rate and the pmium or discounted fixed percentage. For example, if the LIBOR is 3% and the fixed interest portion of the swap is at a 7% pmium, the absolute rate is 10%.