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   Accrual Swap
   















 

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Accrual Swap

(1) A swap in which interest is earned and paid on one side under circumstances determined by the level or range of some index rate. The payment might be comparable to the coupon on an index range note. (2) An accreting principal or accumulation swap (increasing principal). See Accreting Principal Swap (APS). (3) A zero coupon swap.

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