As per Wikipedia, "an interest rate swap (IRS) is a popular and highly liquid financial derivative instrument in which two parties agree to exchange interest rate cash flows, based on a specified notional amount from a fixed rate to a floating rate (or vice versa) or from one floating rate to another."

Companies perform such agreements to save on interest payments, and this post will detail out how an interest rate swap happens and how we perform the calculations on an interest rate swap.

For an explanation with images and tables, please head to the blog post at [ Ссылка ]

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