Question: Question 12 For a floating rate borrower who uses a swap to hedges their interest rate risk, the swap will subsequently develop a positive value:

Question 12 For a floating rate borrower who uses a swap to hedges their interest rate risk, the swap will subsequently develop a positive value: the cost of funds for the borrower will fall then the borrower has paid lower than expected interest to their lender the cost of funds will exceed the swap rate O then the borrower has paid higher than expected interest to their lender Previous Next

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