In a conventional interest rate swap agreement, the fixed-rate payer is attempting to transform the variable-rate nature of its liabilities into fixed-rate liabilities.

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In an interest rate swap, the fixed-rate payer exchanges a fixed rate for a variable rate in order to hedge against the risk of fluctuating interest rates and transform their variable-rate liabilities into fixed-rate liabilities.

In a Conventional Interest Rate Swap Agreement, the Fixed-Rate Payer