2. Which of the following is true in relation to a fixed rate lender that wishes...

2. Which of the following is true in relation to a fixed rate lender that wishes to transform its position using an interest rate swap?
a. they should enter into a long interest rate swap
b. following the transformation, should the floating rate increase the lender receives more
c. following the transformation, the fixed rate reception is offset by the pay-fixed leg of the interest rate swap
d. all of the above

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jeff jeffy answered 6 months ago

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