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    Corporate Finance Study Set 8
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    Exam 25: Derivatives and Hedging Risk
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    An Inverse Floater and a Super-Inverse Floater Are More Valuable
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An Inverse Floater and a Super-Inverse Floater Are More Valuable

Question 8

Question 8

Multiple Choice

An inverse floater and a super-inverse floater are more valuable to a purchaser if:


A) interest rates stay the same.
B) interest rates fall.
C) interest rates rise.
D) held for a long time.
E) None of the above.

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