Define an interest rate swap

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Reference no: EM13839807

Several Investment Committee members have asked about interest rate swap agreements and how they are used in the management of domestic fixed-income portfolios.

Define an interest rate swap, and briefly describe the obligation of each party involved.
Cite and explain two examples of how interest rate swaps could be used by a fixed- income portfolio manager to control risk or improve return.

Reference no: EM13839807

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