Company A swaps fixed-rate US dollar debt with Company B for floating-rate Canadian dollar debt.This is a
A)single-currency interest rate swap
B)currency swap
C)cross-currency interest rate swap
D)none of these

Question

Quizplus · Accepted Answer

This is a cross-currency interest rate swap as two parties are exchanging fixed-rate and floating-rate debt denominated in different currencies. Specifically, Company A is swapping their fixed-rate US dollar debt for Company B's floating-rate Canadian dollar debt.

Company a Swaps Fixed-Rate US Dollar Debt with Company B