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Economics/Questions about interest rate swaps......


What are differences between interest rate swaps and bonds market ?

2-can interest rate swaps grow to infinity ?

Bonds are debt.  When a company or government issues a bond, investors give them money that the company/government must repay with interest.  By contrast, interest rate swaps occur when two companies agree to exchange future cash flows from a particular interest rate.  In other words, as each organization realizes those cash flows at future dates, instead of keeping those cash-flows internal, they will transfer them to the other organization in the agreement.

Interest rate swaps can grow to infinity, yes, but only in theory.  It can never happen in the real world.  Not only can nothing growth to infinity in the real world, since infinity is a limit, transcendental of rational algebraic application, but companies will stop participating in swaps once other investments become a more viable option.


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Michael Taillard


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Economic Consulting: American Red Cross; US Strategic Command -- Economics Lecturing: Bellevue University (Bellevue, NE) Huijia College (Beijing), OPII Schools (Omaha), Madonna University (Livonia), Schoolcraft College (Livonia), ZomBCon (Seattle), Zombiefest (Lincoln) -- Media Appearances: Dead Man Working (2012 Movie documentary), The Heartland News (Omaha local news outlet)

American Economics Association, Business Networks International, Midwest Writer's Guild, Zombie Research Society

Economics and Modern Warfare: The Invisible Fist of the Market (Palgrave Macmillan) -- 101 Things Everyone Should Know about Global Economics (Adams Media) -- Corporate Finance for Dummies (Wiley) -- Psychology and Modern Warfare (Palgrave Macmillan) -- Analytics and Modern Warfare (Palgrave Macmillan)

PhD (Financial Economics; honors) -- MBA (International Business Finance; honors) -- Grad School Certificate (International Business Management; honors) -- BS (International Business Economics; honors) -- AA (Business Administration; honors) -- Certificate (Chinese Language and Culture) -- Trade School (Transportation Logistics; honors)

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Philanthropy awards and nominations for the OPII Schools economic experiment

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