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A key reason that firms and financial institutions might participate in an interest rate swap is A) the low information costs of swaps compared with

A key reason that firms and financial institutions might participate in an interest rate swap is

A) the low information costs of swaps compared with other derivative contracts.

B) to transfer interest rate risk to parties that are more willing to bear it.

C) the greater liquidity of swaps compared with other derivative contracts.

D) the favorable tax implications of swaps compared with other derivative contracts.

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