1. Up-front fees on loan commitments are charged as a certain percentage of
commitment size.
loan taken down.
utilized portion of commitment size.
unused portion of commitment size.
interest payable on the loan commitment.
2. What is a swap?
An agreement between two parties to exchange assets or a series of cash flows for a specific period of time at a specified interval.
An agreement between a buyer and a seller at time 0 to exchange a nonstandardized asset for cash at some future date.
A contract that gives the holder the right, but not the obligation to buy or sell the underlying asset at a specified price within a specified period of time.
Trading in securities prior to their actual issue.
Contractual commitment to make a loan up to a stated amount at a given interest rate in the future.