Suppose that a life insurance company has issued a three-year GIC with a fixed-rate of 10%. Under

Question:

Suppose that a life insurance company has issued a three-year GIC with a fixed-rate of 10%. Under what circumstances might it be feasible for the life insurance company to invest the funds in a floating-rate security and enter into a three-year interest-rate swap in which it pays a floating rate and receives a fixed-rate?