An interest rate swap is commonly used by an issuer of fixed rate bonds to:

Name: An interest rate swap is commonly used by an issuer of fixed rate bonds to:
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An interest rate swap allows the issuer of fixed rate bonds to convert their fixed interest payments to floating rate payments, which can help manage their interest rate risk. This helps the issuer to be more flexible with their debt management and potentially lower their overall cost of borrowing.

An Interest Rate Swap Is Commonly Used by an Issuer