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    Financial Institutions Instruments and Markets
  4. Exam
    Exam 21: Interest Rate Swaps, Cross-Currency Swaps and Credit Default
  5. Question
    When the Normal Relationship Between Fixed and Floating Interest Rates
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When the Normal Relationship Between Fixed and Floating Interest Rates

Question 7

Question 7

Multiple Choice

When the normal relationship between fixed and floating interest rates alters in an interest rate swap,this risk is called:


A) basis risk.
B) exchange risk.
C) mismatch risk.
D) front-end risk.

Correct Answer:

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