A Bond Investor Who Is Worried About Future Fluctuations in Interest

question 38

Multiple Choice

A bond investor who is worried about future fluctuations in interest rates could:

• A) enter into a swap to pay both a fixed and a floating rate.
• B) enter into a swap to pay a fixed rate and receive a floating rate.
• C) enter into a swap to pay a floating rate and pay a fixed rate.
• D) enter into a swap to receive both a fixed and a floating rate.

---

Definitions:

Sexual Aversion Disorder

A psychological condition characterized by a persistent and irrational fear of sexual activity, leading to significant distress or impairment.

Reluctance

A feeling of hesitation or unwillingness to engage in an activity or accept an idea.

Sexual Activity

Behaviors involving the sexual organs that can result in sexual pleasure and/or reproduction.

Homosexuality

A type of sexual preference where one experiences romantic or sexual feelings towards people of the same gender.