Definition of 'Swap Rate'
Swap rates are important because they are used to determine the value of interest rate swaps. The swap rate is also used to calculate the interest payments on an interest rate swap.
There are two types of swap rates:
* Fixed swap rates: These are interest rates that are fixed for the life of the swap.
* Floating swap rates: These are interest rates that are based on a floating index, such as the LIBOR or the OIS.
The swap rate is an important concept in finance, and it is used in a variety of financial transactions.
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