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An interest rate swap can be interpreted as a position in two cash market instruments. What are they from the buyers perspective? ____ A long-side

An interest rate swap can be interpreted as a position in two cash market instruments. What are they from the buyers perspective?

____

  1. A long-side of a floating-rate bond and a short position in a fixed-rate bond
  2. Purchasing a fixed-rate bond and issuing at a floating-rate
  3. Going long and short simultaneously in a floating-rate bond
  4. Buying a long-term bond and financing with a short-term bond

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