A company enters into an interest rate swap where it is paying fixed and receiving LIBOR. When interest rates decrease, which of the following is TRUE? Select one alternative The value of the swap to the company increases. The value of the swap to the company decreases. Is correct The value of the swap can either increase or decrease. The value of the swap does not change providing the swap rate remains the same.

Which of the following statements is TRUE? Interest rate swaps can be used to: Select one: a. Convert floating rate investments to fixed rate investments b. Convert floating rate debt to fixed rate debt c. Adjust interest rate risk arising in a project or across a business by matching the interest rate sensitivity of interest earned with interest payable d. All of the above

Which of the following statements are TRUE? LIBOR is: Select one or more: a. A variable market rate that reflects the average interest rate that banks will lend to each other for a specified period of time b. A regulated interest rate set by each country's central bank. c. A benchmark interest rate used by parties in a swap contract to determine the amount of the floating rate payments d. A long-term fixed rate of interest rate agreed bilaterally between two banks

Identify the correct statement from below. (More than one options may be correct.)When interest rate increases, borrowing decreases.When interest rate increases, borrowing increases.When interest rate decreases, borrowing increases.When interest rate decreases, borrowing decreases.

Which of the following statements best describes changes in the value of a long forward position during its life?A.As interest rates go down, the value of the position goes upB.As the time to maturity goes down, the value of the position goes upC.As the price of the underlying goes up, the value of the position goes up

A swap deal is executed by:Select one:a.Settling the difference int he ratesb.Actual delivery of currenciesc.Entering into another swap deald.None of the above