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If a company enters into a hedging contract to swap a floating interest rate for a fixed rate, by the end of the contract the
If a company enters into a hedging contract to swap a floating interest rate for a fixed rate, by the end of the contract the interest rate incurred by the company will equal
A
the fixed rate.
B
the floating rate.
C
whichever rate is highest.
D
the difference between the fixed and the floating rate.
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