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________ Is a Cash-Settled,over-The-Counter Forward Contract That Allows a Company

Question 3

Multiple Choice

________ is a cash-settled,over-the-counter forward contract that allows a company to fix an interest rate to be applied to a specified future interest period on a notional principal amount.


A) interest rate currency swap
B) dual currency bond
C) exchange of principal
D) forward rate agreement

Correct Answer:

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