Interest Rate Swaps Can Be Used for All of the Following

question 2

Multiple Choice

Interest rate swaps can be used for all of the following purposes except:

• A)to borrow at the prime rate
• B)to convert a fixed-rate loan into a floating-rate loan
• C)to convert a floating-rate loan into a fixed-rate loan
• D)to speculate on interest rates
• E)to hedge interest rate risk

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