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When the interest rates payable are those of the day on which they are to be paid, it would potentially benefit investors who want to pay lower interest rates. In this case, if interest rates are falling, then the LIBOR in-arrears swap would be favourable to such investors.
The Absolute Rate is shown in percentage form (not as a reference rate discount), and combines the reference rate and the discounted fixed percentage of an interest rate swap. So, with LIBOR rates at 2 percent and a fixed interest swap component of 6 percent, the Absolute Rate is calculated to be 8 percent.