Interest rate guarantee: Difference between revisions
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Revision as of 14:19, 23 October 2012
(IRG). This is an option on a specified short-term interest rate for a specified notional loan or deposit.
A borrower normally wants a guarantee that their hedged rate payable will be 'no higher than' a specified worst case rate.
A lender or investor normally wants a guarantee that their hedged rate receivable will be 'no less than' a specified worst case rate.
See also
