CH 7 notations Flashcards
1
Q
Bf ix
A
Value of fixed-rate bond underlying the swap
2
Q
Bf l
A
Value of floating-rate bond underlying the swap
3
Q
BF
A
is the value, measured in foreign currency, of the bond defined by the foreign cash flows on the swap.
4
Q
BD
A
is the value of the bond defined by the domestic cash flows on the
5
Q
S0
A
is the spot exchange rate (expressed as number of dollars per unit of foreign currency)