What Is a Zero Coupon Swap?

If in a general interest rate exchange transaction, a series of fixed payments are replaced by a single payment, it is called a zero interest rate exchange ; it is equivalent to the interest income of a zero interest bond, in exchange for a float ...

Zero coupon swap

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If in a general interest rate exchange transaction, a series of fixed payments are replaced by a single payment, it is called a zero interest rate exchange ; it is equivalent to the interest income of a zero interest bond, in exchange for a float ...

Zero-coupon swaps refers to the replacement of multiple payments of fixed interest with a one-time payment. The one-time payment can be at the beginning or end of the swap period.