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   Binary Swap
   















 

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Binary Swap

A fixed for floating rate swap with the floating rate set at a spread over the reference index rate if the reference rate is in a designated range on the reset date and with no floating rate payment if the reference rate is outside the range. A binary swap is usually embedded in a note. Also called Binary LIBOR Swap. See also Binary LIBOR Note, Index Range Note, Binary Option, Range Accumulation Option or Warrant.

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