Which of the Below Statements Is TRUE

Multiple Choice

Which of the below statements is TRUE?

A) The position of a fixed-rate payer is equivalent to a long position in a fixed-rate bond and a short position in a floating-rate bond.
B) The interest rate swap can allow each party to accomplish its asset/liability objective of locking in a spread.
C) The interest rate swap does not permit financial institutions to alter the cash flow characteristics of their assets: from fixed to floating or from floating to fixed.
D) By issuing securities in the Eurodollar bond market and using the interest rate swap, an entity cannot reduce its cost of issuing securities.