If a swap DOES exchange notional principals at the start, when the swap is over, and those notional principals are exchanged back, is there also a final swap cash flow at that day or is the only cash flow the exchange of principals back to each other?
QUICK swap response!
As is in Level2, there is a final cash flow in addition to the principals.
thank you!
what swaps do exchange notional principals? is it correct that interest and equity swaps dont exchange notionap principals?
According to the CFA curriculum, only in a currency swap do you exchange notional principals.
I understand that in practice this is not always done in currency swaps.
Thanks s2000! That’s also what I remember, just trying to confirm