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Par swap - Financial definition

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Concise definition of the term par swap

A swap in which the present value of the fixed leg cash flows is equal to the present value of the floating leg cash flows (it has an NPV of zero).

Comprehensive definition of the term par swap

In other words, a par swap is a fair exchange of cash flows. A par swap would have a zero NPV at inception.

Additional information related to this definition

Definitions of related terms

Cash flow  •  Present value  •  Swap

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