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    Business
  3. Study Set
    Derivatives and Risk Management Study Set 2
  4. Exam
    Exam 11: Swaps
  5. Question
    A Company That Borrows at a Floating Rate and Uses
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A Company That Borrows at a Floating Rate and Uses

Question 1

Question 1

True/False

A company that borrows at a floating rate and uses a swap to convert into a fixed rate is assuming some credit risk.

Correct Answer:

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