If a Company That Had a Floating-Rate Liability Wanted to Enter

Multiple Choice

If a company that had a floating-rate liability wanted to enter into a swap to achieve a fixed-rate cost of funds,it would pay a:

A) fixed rate to the counterparty and receive a floating rate in return from the counterparty.
B) floating rate to the counterparty and pay a floating rate to the fixed-rate lender.
C) floating rate to the counterparty and pay a fixed-rate to the fixed-rate lender.
D) floating rate to the counterparty and receive a fixed-rate in return from the counterparty.