When a Company Hedges Its Balance Sheet Risk with a Fixed-Rate

question 87

Multiple Choice

When a company hedges its balance sheet risk with a fixed-rate for floating rate interest-rate swap,which part of its balance sheet is affected?

• A) Long term as well as short term assets and liabilities
• B) Only its long term liabilities
• C) Both long-term assets and long term liabilities
• D) Only its long term assets

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Definitions:

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