22. To achieve the target duration for the pension plans bond portfolio, WMTC should enter into an...

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22. To achieve the target duration for the pension plan’s bond portfolio, WMTC should enter into an interest rate swap with a modified duration that is:

A. negative, requiring WTMC to make fixed-rate payments and receive floating-rate payments.

B. negative, requiring WTMC to make floating-rate payments and receive fixed-rate payments.

C. positive, requiring WTMC to make fixed-rate payments and receive floating-rate payments.

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Derivatives

ISBN: 9781119850571

1st Edition

Authors: CFA Institute

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Question Posted: Oct 24, 2024 03:02 AM

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22. To achieve the target duration for the pension plans bond portfolio, WMTC should enter into an...

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Derivatives

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