Looking back at the EquiCredit example we used to open the chapter, why would you say EquiCredit
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Looking back at the EquiCredit example we used to open the chapter, why would you say EquiCredit used a swap agreement? In other words, why didn’t EquiCredit just go ahead and issue fixed-rate bonds since the net effect of issuing variable-rate bonds and then doing a swap is to create a fixed-rate bond?
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EquiCredit may have used a swap agreement for several reasons 1 Risk Management Swaps allow companies to manage their exposure to interest rate risk B...View the full answer
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9780072553079
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
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