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Your firm is required to make fixed-rate interest payments but prefers to make floating-rate payments. Another firm is obligated by its bond indenture to make

Your firm is required to make fixed-rate interest payments but prefers to make floating-rate payments. Another firm is obligated by its bond indenture to make floating-rate payments but desires to make fixed-rate payments. You can help both firms achieve their preferences by arranging a(n) ___________.

A) interest rate forward contract

B) interest rate futures option

C) interest rate swap

D) interest rate option contract

E) none of the above

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