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    Principles of Money Banking
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    Exam 9: Demystifying Derivatives
  5. Question
    A Speculator Becomes the Fixed-Rate Payer in an Interest Rate
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A Speculator Becomes the Fixed-Rate Payer in an Interest Rate

Question 2

Question 2

Multiple Choice

A speculator becomes the fixed-rate payer in an interest rate swap. He expects that


A) long rates rise.
B) long rates fall.
C) short rates rise.
D) short rates fall.

Correct Answer:

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