Company X Issues Variable-Rate Debt but Wishes to Fix Its

question 30

Multiple Choice

Company X issues variable-rate debt but wishes to fix its interest rates because it believes the variable rate may increase.Company Y has a fixed-rate bond but is looking for a variable-rate interest because it assumes the interest rates may decrease.The two companies agree to exchange cash flows.Such an arrangement is called:

• A)a futures contract.
• B)a forward contract.
• C)a swap.
• D)an option.

Comprehend the importance of preparing and structuring information before delivering bad news in person.

Apply the principles of tact and diplomacy in constructing bad-news messages within organizations.

Understand the use of passive-voice verbs to soften the impact of bad news.

Learn the elements to include in the closure of bad-news messages to maintain a positive tone.

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Definitions:

Defence Mechanisms

Psychological strategies brought into play by the unconscious mind to manipulate, deny, or distort reality in order to defend against feelings of anxiety and unacceptable impulses.

Unpleasant Emotions

Emotions that cause discomfort or distress, such as anger, sadness, fear, or jealousy.

Anxiety

A mental health disorder characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one's daily activities.

Reaction Formation

A psychological defense mechanism where an individual expresses feelings or behaviors that are opposite to their true feelings or desires, often to hide those true feelings.