Explain how the outcome from using a basic interest rate swap to hedge borrowing costs will generally

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Explain how the outcome from using a basic interest rate swap to hedge borrowing costs will generally differ from using an interest rate cap and an interest rate collar as hedges. Why is there a difference?

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Bank Management

ISBN: 978-1133494683

8th edition

Authors: Timothy W. Koch, S. Scott MacDonald

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Question Posted: Nov 03, 2015 05:56 AM

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Explain how the outcome from using a basic interest rate swap to hedge borrowing costs will generally

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The use of interest rate swaps as a hedge generally fixes an outcome Thus ...View the full answer

Bank Management

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