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This might be a very basic question but I didn't find the answer in the materials I saw on Google. What is the interest rate used to compute the discounted cash flows for both the fixed and variable leg for a basic vanilla interest rate swap ? Thank you in advance !

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    $\begingroup$ The general rule is "The same rate as earned by the collateral for the swap". This is generally the OIS rate (overnight-index swap rate). Prior to 2007 it was commonly the Libor rate (and some textbooks still mention Libor for this reason). $\endgroup$
    – nbbo2
    Commented Sep 26, 2017 at 22:17

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