Multiple Choice
Which of the following statements is NOT an advantage of a swap transaction?
A) It usually allows the company to achieve a lower cost of funds.
B) It is used to hedge both interest rate risk and foreign exchange risk.
C) It facilitates the restructuring of cash flows associated with existing borrowings.
D) It transfers the credit risk to the counterparty.
Correct Answer:
Verified
Correct Answer:
Verified
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