Swap Rate
The swap rate is the fixed rate used in a plain-vanilla interest rate swap that makes the present value of fixed payments equal to the present value of expected floating payments on a given notional amount.
Example: In a five-year USD plain-vanilla swap, the fixed leg might be set at the current five-year swap rate; the counterparty pays that fixed rate on the notional and receives a floating rate tied to SOFR on the same notional.
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