Hello! I would be very grateful if you could help me with one issue. Recently I got very interested in interest rate swaps and although they are not the most popular instrument on the financial markets there is still a lot of information on them. But there is one thing I couldnât find a straight answer for. I would be very grateful if you could help me with the answer of the following question: If I decide to make an interest rate swap where Iâll be paying fixed and receiving floating interest (and fixed â floating = zero at the beginning) what is the price I would have to pay? Is it just some kind of commission to the investment bank or do I have to make a payment to the other side of the contract? I would like to thank you in advance for the help. Best regards
Might be a good question to post in the Options Forum. Maverick74, riskarb, momoney, and some of those guys are VERY sharp, and may well be able to help.