A pension fund holds a portfolio of money market securities that the manager believes are paying excellent

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A pension fund holds a portfolio of money market securities that the manager believes are paying excellent yields compared to other comparable-risk short-term securities. However, the manager believes that interest rates are about to fall. What type of swap will allow the fund to continue to hold its portfolio of short-term securities while at the same time benefiting from a decline in rates?

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Essentials Of Investments

ISBN: 9780073368719

7th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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