Which of the Following About Interest Rate Swaps Is NOT

Multiple Choice

Which of the following about interest rate swaps is NOT correct?

A) An interest rate swap allows a company to change the net characteristics of its interest rate cash flows.
B) An interest rate swap is based on interest rates worked out on a notional principal.
C) If a company has a fixed-rate loan it can enter into an interest rate swap whereby the bank lender will pay it a variable rate to net out the fixed rate from the company.
D) A cross-currency swap involves the exchange and interest payments based on a fixed exchange rate.