An interest rate swap allows an MNC to change the nature of its debt from a ________.

Question

Quizplus · Accepted Answer

An interest rate swap allows an MNC to change the nature of its debt from a fixed interest rate to a floating interest rate. This enables the MNC to manage its interest rate risk and potentially lower its borrowing costs by taking advantage of fluctuations in market interest rates. Options B, C, and D are not accurate descriptions of what an interest rate swap allows an MNC to do.

An Interest Rate Swap Allows an MNC to Change the Nature