Interest rate swap 1 | Finance & Capital Markets | Khan Academy

The basic dynamic of an interest rate swap. Created by Sal Khan.

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Finance and capital markets on Khan Academy: Interest is the basis of modern capital markets. Depending on whether you are lending or borrowing, it can be viewed as a return on an asset (lending) or the cost of capital (borrowing). This tutorial gives an introduction to this fundamental concept, including what it means to compound. It also gives a rule of thumb that might make it easy to do some rough interest calculations in your head.

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[Hoppensagen]

Okay seriously this guy is way better at explaining things then my teacher. It's me 3 minutes to get it here, and takes my teacher 2 hours.

[verdaderoamor]

Thank you Sir ! You deserve more than just a comment for this wonderful presentation !

[TouchHerICutU]

I was studying for exam FM via coaching actuaries and needed clarification on this topic. This cleared it up! Thanks Khan!

[pavanmadhrani]

i never comment but credit where credits due ive got a final year uni exam in 12h and this guys saving my life rn

[Nightshade_]

Learnt so much from you. Wish i came across this channel earlier. Amazing explanation from back of the day ❤👏.

[dynamicfoe]

Most likely, Company A has weak or poor credit ratings, hence, banks will issue floating interest rate for Company A.

[nazhansyamil]

hey it's 10 years from the videos was posted but this helps me a lot, thank you so much!

[qbtopuk]

That explanation is the best explanation on this topic I ever had.

[Krokorok]

My teacher told me about your channel. Plus when she said "Khan" I was like: :O

My middle name is also Khan so yeah...

[fightpulpfictionclub]

Thank you so much for the video. Much appreciated.

[Soni_Saheb]

Super thanks @khan academy🎉
You made it too easy to understand

[DarkSCtv]

way clearer than my course material, thanks a lot

[pebre]

I love ya Sal! you're a fantastic teacher

[BKwai]

Hi Khan
Would you mind to share some idea about CNY repo IRS ?
Thanks

[Stevenuge]

sometimes I watch your videos to listen to your

[danielhuisman]

I get how it works but why on earth would they do it??

[simranbudakoti]

Thanks helped me a lot... 😊😊 Keep making such videos.. 👍👍

[sreejeshvadakkekkara]

Thank you so much the crispy serious master!

[keyblade]

here what i don't get, why would company A take out a variable rate if it doesnt like a variable rate just to swap it with another company?

[deepsarkar]

What if the floating rate increases the next year? Will they still follow the same arrangement?