Why might an individual or organization be willing to swap their fixed-rate loans for floating-rate loans?
A) They may perceive that interest rates are ready to increase.
B) Their cash flows may vary directly with interest rates.
C) Floating rates may be higher than fixed rates.
D)They may be able to postpone the payment of principal.

Question

Quizplus · Accepted Answer

Floating-rate loans can be advantageous for individuals or organizations whose cash flows vary with interest rates, as this can help align their income with their loan repayment obligations.

Why Might an Individual or Organization Be Willing to Swap