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AFP Certified Treasury Professional CTP Question # 357 Topic 13 Discussion

AFP Certified Treasury Professional CTP Question # 357 Topic 13 Discussion

CTP Exam Topic 13 Question 357 Discussion:
Question #: 357
Topic #: 13

A company with a relatively poor credit rating borrows most of its funds with short maturities. They may want to change its exposure to interest rates to more correctly reflect the long-term nature of the projects it is funding. Or, they may believe that long-term interest rates are going to rise, causing it to seek protection against the impact of higher interest rates on its balance sheet. Which of the following would be a solution?


A.

Forward contract


B.

Interest rate swap


C.

Currency option


D.

Futures contract


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