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One of the Reasons Companies Use Interest Rate Swaps Is

question 6

True/False

One of the reasons companies use interest rate swaps is because they pursue a target debt structure that combines maturity, currency of composition, and fixed/floating pricing.


Definitions:

Per Month

A recurring period or frequency, indicating that an action or event occurs or is calculated on a monthly basis.

Effective Rate

The actual interest rate an investor earns or pays on an investment or loan, taking into account the compounding of interest.

Per Month

A recurring or regular interval of payment or calculation that occurs every month.

Strip Bonds

Bonds that have had their principal and coupon payments separated, or "stripped", creating two distinct types of securities: zero-coupon bonds and interest payment coupons.

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