Interest rate forward contracts are publicly traded.

Interest Rate Forward Contracts

Financial derivatives that lock in the future interest rate to be paid or received on a certain principal amount.

Acquaint yourself with the basic differences between forward contracts and futures contracts.
Identify the functions and characteristics of various financial exchanges.

Verified Answer

Laurencia StorrJun 28, 2024

Final Answer :

False

Explanation :

Interest rate forward contracts are typically over-the-counter (OTC) derivatives, meaning they are privately negotiated and not traded on public exchanges.

Learning Objectives

Acquaint yourself with the basic differences between forward contracts and futures contracts.
Identify the functions and characteristics of various financial exchanges.

Interest rate forward contracts are publicly traded.

Definitions

Learning Objectives

Learning Objectives

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