Question: Explain how a company planning to issue four-year, fixed-rate bonds in two years could use a forward swap to lock in the fix rate it

Explain how a company planning to issue four-year, fixed-rate bonds in two years could use a forward swap to lock in the fix rate it will pay on the bonds. Explain how the hedge works at the expiration of the forward contract.

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A company planning to issue fouryear fixedrate bonds in two years can use a forward swap to lock in the fixed rate it will pay on the bonds Heres how ... View full answer

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