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Suppose a U

Question 8

Multiple Choice

Suppose a U.S.corporation wants to secure fixed-rate funds in pounds in order to reduce its pound exposure,but is hampered in doing so because it is a relatively unknown credit in the British financial market.In contrast,a British company that is well established in its own country may desire floating-rate dollar financing,but is relatively unknown in the U.S.financial market.What is the most appropriate form of swap for these two parties?


A) interest rate/currency swap
B) currency swap
C) interest rate swap
D) debt/equity swap

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