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Question
What are differences between interest rate swaps and bonds market ?

2-can interest rate swaps grow to infinity ?

Answer
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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Accepts most economic questions

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Consulting with major corporations, government agencies, political organizations, small businesses, non-profits, start-ups, and even individual people. Teaching at universities around the world, and developing original coursework. Performing original research and analysis. Writing books and scientific studies.

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American Economics Association

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http://www.barnesandnoble.com/s/michael%20taillard You can also check Proquest for a small selection of my research.

Education/Credentials
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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