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CFA Level 3
Derivatives & Currency Mgmt

Interest Rate Swap Strategy for Fixed-Rate Debt

Very Easy Derivative Strategies Swap Strategies

In the context of managing interest rate exposure, a corporation with a fixed-rate debt might consider using a swap strategy to optimize its current capital structure. Describe how this corporation could implement an interest rate swap and the potential benefits associated with this strategy. Be sure to include relevant definitions and key components of interest rate swaps.

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