interest rate swap

interest rate swap definition - finance
The exchange of cash flows according to a predetermined agreement, usually between two parties. Upon the payment date of the swap, typically only the difference between the two payment amounts is given to the party that is entitled to it, which results in very little cash being spent.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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