A Preferred Interest Rate Swap Strategy for a Firm with Variable-Rate

question 48

Multiple Choice

A preferred interest rate swap strategy for a firm with variable-rate debt and that expects rates to go up is to

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

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Definitions:

Evidence Support

Documentation or data that provides backing for claims, hypotheses, or propositions.

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Two-tail Test

A statistical test that determines if there is a significant difference between the means or proportions of two populations in either direction.