Question
An FI has long-term fixed-rate assets funded by short-term variable-rate liabilities. To protect the equity value, the FI may engage in a swap to pay
An FI has long-term fixed-rate assets funded by short-term variable-rate liabilities. To protect the equity value, the FI may engage in a swap to pay a _____ rate and receive a _____ interest.
A. variable; variable
B. fixed; fixed
C. variable; fixed
D. fixed; variable
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Multinational Finance
Authors: Kirt C. Butler
4th Edition
1405181184, 978-1405181181
