An Interest Rate Swap Is Commonly Used by an Issuer

question 47

Multiple Choice

An interest rate swap is commonly used by an issuer of fixed-rate bonds to:

• A)convert to floating-rate payments.
• B)hedge exchange rate risk.
• C)lock in the interest payments on its debt.
• D)eliminate the credit risk of its debt.

---

Definitions:

Social Dignity

The recognition of an individual's intrinsic worth and the respect accorded to them within a society.

Functional Independence

The ability of an individual to carry out daily activities and tasks without the need for assistance from others.

Spirits

Can refer to alcoholic beverages, or in a different context, to the non-physical aspects of a person's being, often considered to be synonymous with the soul.

Deceased

Referring to a person who has died.