Question: Compary x issues variable - rate debt but wishes to fix its interest rates because it believes the variable rate may increase. Company Y has

Compary x issues variable-rate debt but wishes to fix its interest rates because it believes the variable rate may increase. Company Y has a fixed-rate bond but is looking for a variable-rate interest because it assumes the interest rates may decrease. The two companies agree to exchange cash flows. Such an arrangement is called:
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Compary x issues variable - rate debt but wishes

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