is it error in spreadsheet P1_T4.Hull_Ch7-Swap IRS?

[puneet_]

Hi, example in that sheet is says value of fix receiver swap is value of floating side minus value of fixed side in cell H23. but i thought, value of swap should be= value of receiving side - value of paying side so in this case, we are receiving fix, so value of swap should be = value of fix side - value of floating side?

can someone pls confirm?

I am sorry, i am unable to paste image here from mac, not sure if it's problem with my mac.

 

[puneet_]

 

[David Harper CFA FRM]

Hi @puneet_

Yes, you are correct. Sorry. I'm not sure how many versions that ripples through, but I don't think we noticed because the displayed value is correct from either the perspective of a fixed-rate payer or a floating-rate payer. I could just remove the word "Receive," which will nullify the suggestion that the value is from one perspective, as I think that's the only semantic problem; or, as you suggest, the difference should be switched as--in this case, for example--from the perspective of a floating-rate payer, the swap value is -$0.51 mm (while from the perspective of a fixed=rate payer the swap value is +0.51 mm). Good catch, my dumb, thank you!