Interest rate swaps cost

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Hello!

I would be very grateful if you could help me with one issue.

Recently I got very interested in interest rate swaps and although they are not the most popular instrument on the financial markets there is still a lot of information on them. But there is one thing I couldn’t find a straight answer for. I would be very grateful if you could help me with the answer of the following question:

If I decide to make an interest rate swap where I’ll be paying fixed and receiving floating interest (and fixed – floating = zero at the beginning) what is the price I would have to pay? Is it just some kind of commission to the investment bank or do I have to make a payment to the other side of the contract?

I would like to thank you in advance for the help.

Best regards
 
Might be a good question to post in the Options Forum.

Maverick74, riskarb, momoney, and some of those guys are VERY sharp, and may well be able to help.
 
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