The Interest Rate Swap Strategy of a Firm with Fixed

question 42

Multiple Choice

The interest rate swap strategy of a firm with fixed rate debt and that expects rates to go up is to:

• A) do nothing.
• B) pay floating and receive fixed.
• C) receive floating and pay fixed.
• D) none of the above

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Definitions:

Accounting Transaction

An economic event that changes a company’s financial statements, involving the transfer of value between two parties.

Public Accountants

Accounting professionals who provide services such as auditing, tax preparation, and consulting to the general public.

Management Consulting

Professional services that aim to help organizations improve their performance, primarily through the analysis of existing organizational problems and development of plans for improvement.

Luca Pacioli

Known as the father of accounting and bookkeeping, he was the first to publish a work on the double-entry system of bookkeeping.