An Interest Rate Swap is an agreement between two counterparties to exchange cash-flows (e.g. a fixed rate, whose value is pre-established, versus a floating rate, whose value is reset with a pre-established frequency) in the same currency. Main features of the derivative (e.g. notional, payment dates, reset dates, etc ...) are defined at trade date.
The floating rate could be a Constant Maturity Swap, the par swap rate, payed on the fixed leg, that balances the mutual performance of the floating leg with maturity equal to the maturity of the CMS rate.
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