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Lease rate swap
       
 
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Lease rate swap

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Lease rate swap
gold is borrowed/ lent at a "fixed" rate. The floating leg is re-priced at incremental time periods over the maturity of the Swap. At the end of each floating period the agreed upon
Benchmark lease rate is compared to the contract rate and the party in debit pays the differential. The floating component is then rolled out for a further period.
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