Refer to Instruction 8.1. Choosing strategy #2 will:

A) guarantee the lowest average annual rate over the next three years.
B) eliminate credit risk but retain repricing risk.
C) maintain the possibility of lower interest costs, but maximizes the combined credit and repricing risks.
D) preclude the possibility of sharing in lower interest rates over the three-year period.


Answer: B

Business

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Indicate whether the statement is true or false

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