A tension leg mooring system for a wind turbine: left-hand tower-bearing structure ( grey ) is free floating, the right-hand structure is pulled by the tensioned cables ( red ) down towards the seabed anchors ( light-grey )

The present value of a plain vanilla ( i. e. fixed rate for floating rate ) swap can be computed by determining the present value ( PV ) of the fixed leg and the floating leg.

The value of the floating leg is given by the present value of the floating coupon payments determined at the agreed dates of each payment.

The value of the floating leg is given by the following:

where m is the number of floating payments, is the accrual factor according to the floating leg day count convention.

Newcomers to market finance may think that the risky component is the floating leg, since the underlying interest rate floats, and hence, is unknown.

In other words, the value of the floating leg changes

* A Cap at strike 0 % equals the price of a floating leg ( just as a call at strike 0 is equivalent to holding a stock ) regardless of volatility.

* Ukiashi dachi: Stance resembling Nekoashi dachi, but more upright in a loose floating leg stance.

* Survival floating ( also known as dead man float and drownproofing ): Lying on the prone ( face down in water ) with minimal leg movement, and staying afloat with the natural buoyancy.

* A payer swaption gives the owner of the swaption the right to enter into a swap where they pay the fixed leg and receive the floating leg.

* A receiver swaption gives the owner of the swaption the right to enter into a swap in which they will receive the fixed leg, and pay the floating leg.

* A funding leg usually consists of series of fixed coupons or floating coupons ( LIBOR ) plus fixed spread.

This leg is also commonly referred to as the " floating leg ".

Most equity swaps involve a floating leg vs. an equity leg, although some exist with two equity legs.

and a swap tenor of precisely 180 days, the floating leg payer / equity receiver ( Party A ) would owe ( 5. 97 %+ 0. 03 %)*£ 5, 000, 000 * 180 / 360

* Aerials involve floating in the air while using a hand to hold the board on his or her feet or by not keeping constant and careful pressure on the board with the feet to keep it from floating away.

The mode of a constant can be redefined by adding the character M followed by a single digit at the end of the constant, where 0 indicates floating point, 1 integer, 2 boolean, 3 function name, and 4 statement label.

In constant bit-rate ( CBR ) operation, the quality parameter is an integer, while for variable bit-rate ( VBR ), the parameter is a real ( floating point ) number.

If the angle of attack and velocity remain constant, an increase in the lift coefficient will result, which accounts for the " floating " effect.

In an aircraft installation with a floating battery electrical system the regulator voltage is set to charge the battery at constant potential charge ( typically 14 or 28 V ).

The free floating screed has a number of forces acting on it that, when in equilibrium, allow the depth behind the screed to be constant.

Although the spread remains constant, the majority of floating rate notes contains quarterly coupons that pay-out interest every 3 months with variable percentage returns.

The tanks at Allied Crude were increasingly filled with water, with a small, and constant, amount of oil floating on top.

By 1983, The Cleaners From Venus had evolved into a band with a floating line-up that featured Newell as its only constant.

It is called a floating harbour as the water level remains constant and it is not affected by the state of the tide on the river.

* six communities in which rooted water-lilies and pondweeds with floating leaves are the constant species ( A7, A8, A9, A10, A19 and A20 )

Milkfish reach sexual maturity at, which takes 5 years in floating sea cages, but 8-10 years in ponds and tanks.

As the name introduces it, the option's strike price is floating and determined at maturity.

The payoff is the maximum difference between the market asset's price at maturity and the floating strike.

The maturity of radio communication and sonar technology made it possible to combine a sonar transducer, batteries, a radio transmitter and whip antenna, within a self-contained air-deployed floating ( sono ) buoy.

The medusae develop to sexual maturity within about three weeks in the laboratory and their free-spawned eggs and sperm develop into new floating hydroid colonies.

While floating in the neutral-buoyancy tank that is the artificial gestation chamber, a series of sophisticated retroviruses attack the genome of the In Vitroes, prematurely activating segments of DNA responsible for growth and maturity.

An interest rate swap ( IRS ) is a popular and highly liquid financial derivative instrument in which two parties agree to exchange interest rate cash flows, based on a specified notional amount from a fixed rate to a floating rate ( or vice versa ) or from one floating rate to another.

In an interest rate swap, each counterparty agrees to pay either a fixed or floating rate denominated in a particular currency to the other counterparty.

The most common interest rate swap is one where one counterparty A pays a fixed rate ( the swap rate ) to counterparty B, while receiving a floating rate indexed to a reference rate ( such as LIBOR or EURIBOR ).

The party that pays fixed and receives floating coupon rates is said to be short the interest swap because it is expressed as a bond convention ( as prices fall, yields rise ).

For example, if a company has a fixed rate USD 10 million loan at 5. 3 % paid monthly and a floating rate investment of USD 10 million that returns USD 1M Libor + 25 monthly, it may enter into a fixed-for-floating swap.

In this swap, the company would pay a floating rate of USD 1M Libor + 25 and receive a 5. 5 % fixed rate, locking in 20 profit.

For example, if a company has a fixed rate USD 10 million loan at 5. 3 % paid monthly and a floating rate investment of JPY 1. 2 billion that returns JPY 1M Libor + 50 monthly, and wants to lock in the profit in USD as they expect the JPY 1M Libor to go down or USDJPY to go up ( JPY depreciate against USD ), then they may enter into a Fixed-Floating swap in different currency where the company pays floating JPY 1M Libor + 50 and receives 5. 6 % fixed rate, locking in 30 profit against the interest rate and the fx exposure.

Today, investors with a similar view could enter a floating-for-fixed interest rate swap ; as rates fall, investors would pay a lower floating rate in exchange for the same fixed rate.

* Market Risk: A typical swap consists of two legs, one fixed, the other floating.

Using this tree, ( 1 ) the swap is valued at each node by " stepping backwards " through the tree, where at each node, its value is the discounted expected value of the up-and down-nodes in the later time step, added to which is the discounted value of payments made during the time step in question, and noting that floating payments are based on the short rate at each tree-node.

* Interest rate swap based upon two floating interest rates

The issuer however, entered into an interest rate swap to convert the fixed coupon payments to floating payments ( perhaps based on LIBOR ).

The two cash flows are usually referred to as " legs " of the swap ; one of these " legs " is usually pegged to a floating rate such as LIBOR.

For example, consider the valuation of a fixed-to-floating Interest rate swap where Party A pays a fixed rate, and Party B pays a floating rate.

A deleveraged floater, which gives the investor decreased exposure to the underlying index, can be replicated by buying a pure FRN and entering into a swap to pay floating and receive fixed, on a notional amount of less than the face value of the FRN.

A basis swap is an interest rate swap which involves the exchange of two floating rate financial instruments.