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Rus Form 740c Fillable

Rus Form 740c Fillable

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Instructions and help about Rus Form 740c Fillable

hello this is David Harper a banach turtle with an illustration of a currency swap this is where two counterparties exchange principal and interest in one currency for principal and interest in another currency to illustrate consider that we have two firms the first company here has issued a bond that is denominated in u.s. dollars and then across the ocean another company as issued a bond that's denominated in Euros and they for whatever reason they could have various motives they enter into a currency swap and in particular the easiest variation is a fixed for fixed currency swap so the first thing they do is exchange the principal and so this is the first difference between a currency swap and a plain vanilla interest rate swap and the interest rate swap you may recall the notional is not exchanged however in this a currency swap the counterparties are going to swap the principal at the start of the currency swap and typically that will track pretty closely with the exchange

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