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    Commercial Banking The Management of Risk
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    Exam 6: Techniques of Assetliability Management: Futures, Options, and Swaps
  5. Question
    Differences in Credit Quality Spreads Between Floating and Fixed Rate
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Differences in Credit Quality Spreads Between Floating and Fixed Rate

Question 42

Question 42

True/False

Differences in credit quality spreads between floating and fixed rate markets create the opportunity for both parties in an interest rate swap to lower their cost of funds.

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