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Suppose a Corporation Desires to Borrow Financial Capital for Six

Question 7

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Suppose a corporation desires to borrow financial capital for six months, with two three-month installments. The firm is concerned that interest rates may rise over this period of time. To eliminate interest rate exposure the firm could acquire a


A) 3* 6 Forward Rate Agreement
B) 3 month "floating-for-fixed" Swap
C) 3 month Bond-Index Linked Swap
D) 3 month Warrant
E) All of the above

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