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Question
In an interest rate swap, the position of the floating-rate payer is equivalent to a:a. Long position in a fixed-rate bond and a short position in a floating rate bond.
b. Long position in a floating-rate bond and a short position in a fixed-rate bond.
c. Long position in a fixed-rate bond and a long position in a floating rate bond.
d. Short position in a fixed rate bond and a long position in a floating rate bond.
e. None of the above.
Answer
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