Which of the following is NOT a provision of an interest rate swap?

The correct answer is market capitalization, as it is not a provision included in the structure of an interest rate swap. An interest rate swap is primarily an agreement between two parties to exchange interest rate cash flows on a notional principal amount over a set period.

In an interest rate swap, the fixed interest rate refers to one side of the swap agreement, where one party pays a predetermined fixed rate to the other. This is crucial because it helps establish the terms of the cash flow exchanges. The notional principal is the hypothetical amount on which the interest payments are calculated, although no actual exchange of this principal occurs. Lastly, the frequency of payments indicates how often the exchanges will take place—common intervals are monthly, quarterly, or annually. All of these elements are essential components of an interest rate swap, while market capitalization, which refers to the total market value of a company's outstanding shares, is unrelated to the swap's mechanics.