If you expect short-term interest rates to rise more than


Explain both interest rate swaps and currency swaps. Which instrument has a greater credit risk: an interest rate swap or a currency swap? How can multinational companies utilize a currency swap to reduce borrowing costs? If you expect short-term interest rates to rise more than the yield curve suggests, would you rather pay a fixed long-term rate and receive a floating short-term rate, or receive a fixed long-term rate and pay a floating short-term rate?

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Finance Basics: If you expect short-term interest rates to rise more than
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