An Advantage of a ____ Over Other Interest Rate Swaps

question 30

Multiple Choice

An advantage of a ____ over other interest rate swaps is that the fixed-rate payer has the flexibility to avoid exchanging future interest payments.

• A)callable swap
• B)putable swap
• C)zero-coupon-for-floating swap
• D)forward swap

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Definitions:

Use of Cash

Refers to how a business or individual employs their cash resources, including spending, investing, or saving activities.

Inventory Holdings

The quantity of goods or materials in stock by a business awaiting sale or use.

Payables Manager

A financial professional responsible for managing a company's short-term liabilities and obligations to its creditors and suppliers.

Marketable Securities

Financial instruments that are easily convertible into cash within a short period, typically with high liquidity and low risk.