An interest rate swap is commonly used by an issuer of fixed-rate bonds to: hedge exchange rate risk convert to floating-rate payments. lock in the interest payments on its debt eliminate the credit risk of its debt QUESTION 10 A U.S. firm receives a large amount of cash inflows periodically in Swiss francs as a result of exporting goods to Switzerland. It has no other business outside the United States. It could best reduce its exposure to exchange rate risk by: issuing Swiss franc-denominated bonds O purchasing U.S. dollar-denominated bonds. purchasing Swiss franc-denominated bonds issuing U.S. dollar-denominated bonds An interest rate swap is commonly used by an issuer of fixed-rate bonds to: hedge exchange rate risk convert to floating-rate payments. lock in the interest payments on its debt eliminate the credit risk of its debt QUESTION 10 A U.S. firm receives a large amount of cash inflows periodically in Swiss francs as a result of exporting goods to Switzerland. It has no other business outside the United States. It could best reduce its exposure to exchange rate risk by: issuing Swiss franc-denominated bonds O purchasing U.S. dollar-denominated bonds. purchasing Swiss franc-denominated bonds issuing U.S. dollar-denominated bonds