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A Japanese company has issued floating - rate debt denominated in Japanese yen to finance its operations. However, the company's management is concerned about the
A Japanese company has issued floatingrate debt denominated in Japanese yen to finance its operations. However, the company's management is concerned about the potential increase in JPY interest rates and the impact on its cash flows. Which type of interest rate swap should the company use to convert its floatingrate debt to a fixedrate obligation?
A Pay fixedrate yen, receive floatingrate yen
B Pay floatingrate yen, receive fixedrate yen
C Pay fixedrate US dollars, receive floatingrate yen
D Pay floatingrate US dollars, receive fixedrate yen
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