Browning Enterprises Currently Has All Fixed-Rate Debt

question 61

Multiple Choice

Browning Enterprises currently has all fixed-rate debt.The firm would like to convert part of this to floating-rate debt.Which one of the following will accomplish this for the firm?

• A)option on floating-rate bonds
• B)forward contract on U.S. Treasury bills
• C)interest rate swap
• D)currency swap
• E)interest rate call option

---

Definitions:

Resent

To feel bitterness or indignation at having been treated unfairly or having been wronged.

Interest

The feeling of wanting to know or learn about something or someone.

Avoidance Learning

A process in behavioral psychology where a subject learns to prevent or avoid an unpleasant stimulus by making particular responses.

Learned Helplessness

A condition where individuals learn to believe that they have no control over their situation, often leading to a lack of motivation and depression.