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Question 8 3 pts Which of the following condition is not necessary for an interest rate swap to happen? The existence of a third party,
Question 8 3 pts Which of the following condition is not necessary for an interest rate swap to happen? The existence of a third party, such as a swap bank The company with comparative advantage on fixed rate must want to borrow at variable rate The company with absolute advantage in variable and fixed rate must be willing to swap with a lower quality counter party The presence of QSD between the companies involved in the swap Question 9 3 pts Can a swap bank eliminate their credit risk? O No. Swap bank always face some credit risk O Yes, if the swap bank make sure both parties are AAA rated Yes, if a swap bank only accept LIBOR and pays fixed rate Yes, if the swap bank only accept fixed rate and pay LIBOR
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