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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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