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We agreed to purchase the finished goods at a fixed price.
»With a fixed-price contract, the builder pays all extra costs beyond its agreed-upon value.
In this model, if the price of oil were to rise above the fixed price set by the U.S. government, the government would pay the difference.
The fixed-rate stream does not change for the duration of the swap, while the floating rate stream changes periodically over the duration of the swap as its benchmark interest rate, often LIBOR, changes in accordance with market conditions. Two parties, called counterparties, enter into such transactions to reduce their exposure to changes in interest rates or to attempt to profit from changes in interest rates.
скор. FP
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