The advantages(s)for a company to use an interest rate swap is:
A) it may lower the cost of funds if comparative advantages exist.
B) it may hedge interest rate risk.
C) it may gain access to otherwise inaccessible debt markets.
D) all of the given answers.

Question

Quizplus · Accepted Answer

Using an interest rate swap can provide a company with multiple advantages, including potentially lowering the cost of funds if comparative advantages exist, hedging against interest rate risk, and gaining access to otherwise inaccessible debt markets. Therefore, choosing all of the given answers would be the best option.

The Advantages(s)for a Company to Use an Interest Rate Swap