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On February 23rd 20x8, Jennings Corp. entered into an agreement with Billings Co. to receive a series of interest payments in US dollars based on

On February 23rd 20x8, Jennings Corp. entered into an agreement with Billings Co. to receive a series of interest payments in US dollars based on a fixed interest rate starting on February 23rd 20x9. Which of the following best describes the reason Jennings would enter into this agreement?

Question 14 options:

A. Jennings Co. is hedging against future increases in interest rates by locking in a rate today.

B. Jennings Co. believes the value of the US dollar will rise with respect to interest rates in the near future.

C. Jennings Co. believes the value of the US dollar will fall with respect to interest rates in the near future.

D. Jennings Co. believes that global interest rates will rise in comparison to those in the US economy.


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