Question

Which of the following is a tool for managing interest rate risk?

Q: Answer-Which of the following is a tool for managing interest rate risk?

An IRS is a derivative contract where two parties exchange interest rate payments usually fixed for floating to hedge against or manage exposure to fluctuations in interest rates.

A Credit Default Swap (CDS)

B Collateralized Debt Obligation (CDO)

C Interest Rate Swap (IRS)

D Letter of Credit (LC)

E Factoring

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Which of the following is a tool for managing interest rate risk?

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