The value of a swap is equal to the present value of the:
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the value of swap is a net present value of all estimated future cash flows
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Valuation. The value of a swap is the net present value (NPV) of all estimated future cash flows. A swap is worth zero when it is first initiated, however after this time its value may become positive or negative. There are two ways to value swaps: in terms of bond prices, or as a portfolio of forward contracts.
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