____ swaps are often used by companies to hedge against ____ rate risk.

Name: ____ swaps are often used by companies to hedge against ____ rate risk.
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Question

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Interest rate swaps are used by companies to hedge against interest rate risk by exchanging interest rate cash flows, often swapping fixed for floating rates or vice versa. Currency swaps are used to hedge against exchange rate risk by exchanging principal and interest in one currency for the same in another currency.

____ Swaps Are Often Used by Companies to Hedge Against