24-27 A total return credit swap is eliminates interest rate risk as well as credit risk.

Name: 24-27 A total return credit swap is eliminates interest rate risk as well as credit risk.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A total return credit swap eliminates credit risk by transferring it to the counterparty who is assuming the risk. However, it does not eliminate interest rate risk as it is still subject to changes in interest rates.

24-27 a Total Return Credit Swap Is Eliminates Interest Rate