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    Exam 30: OTC Interest Rate Derivatives: Forward Rate Agreements, Swaps, Caps, and Floors
  5. Question
    The Buyer of a Fixed-Rate Asset Can Use an Interest
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The Buyer of a Fixed-Rate Asset Can Use an Interest

Question 18

Question 18

True/False

The buyer of a fixed-rate asset can use an interest rate floor to establish a lower bound on its investment return, yet retain the opportunity to benefit should rates increase.

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