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Teens hook up waps

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In other words, XYZ will fund ABC's interest payments on its latest bond issue.

Whether it is advantageous for two entities to enter into an interest rate swap depends on their comparative advantage in fixed or floating rate lending markets.

The instruments exchanged in a swap do not have to be interest payments.

Countless varieties of exotic swap agreements exist, but relatively common arrangements include commodity swaps, currency swaps, debt swaps, and total return swaps.