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Zero Basis Risk Swap - ZEBRA

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Zero Basis Risk Swap - ZEBRA
A swap agreement between a municipality and a financial intermediary. Also known as a "perfect swap" or "actual rate swap".

Notes:
The municipality pays a fixed rate of interest to the financial intermediary and receives a floating rate of interest in return. The floating rate received is equal to the floating rate on the outstanding floating-rate debt initially issued by the municipality to the public.


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