Hybex Electrics Is a Highly Rated Company with a Considerable

question 92

Multiple Choice

Hybex Electrics is a highly rated company with a considerable amount of fixed rate liabilities and would like to increase the percentage of floating rate debt. Which of the following is the best course of action?

• A) Hybex should become a payer of a fixed rate on a swap against receipt of LIBOR.
• B) Hybex should become a receiver of a floating rate on a swap against payment of a fixed rate
• C) Hybex should become a receiver of a fixed rate on a swap against payment of LIBOR D.
• D) Hybex should become a receiver of a floating rate on a swap against payment of LIBOR

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Definitions:

Least Stressful

Referring to the condition, situation, or activity that induces the lowest level of stress or discomfort.

Approach-Approach Conflict

A psychological conflict that occurs when an individual must choose between two desirable outcomes or goals.

Attractive-Attractive Conflict

A type of decision-making conflict that occurs when an individual must choose between two appealing options, each with its own set of advantages.

Avoidance-Avoidance Conflict

A psychological conflict that occurs when a person must choose between two equally unattractive options.