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ACI

3I0-012 · Question #57

Hybex Electrics is a highly rated company with a considerable amount of fixed rate liabilities and would like to increase the percentage of floating rate debt. Which of the following is the best…

The correct answer is C. Hybex should become a receiver of a fixed rate on a swap against payment of LIBOR D. See the full explanation below for the reasoning.

Question

Hybex Electrics is a highly rated company with a considerable amount of fixed rate liabilities and would like to increase the percentage of floating rate debt. Which of the following is the best course of action?

Options

  • AHybex should become a payer of a fixed rate on a swap against receipt of LIBOR.
  • BHybex should become a receiver of a floating rate on a swap against payment of a fixed rate
  • CHybex should become a receiver of a fixed rate on a swap against payment of LIBOR D.
  • DHybex should become a receiver of a floating rate on a swap against payment of LIBOR

How the community answered

(31 responses)
  • A
    10% (3)
  • B
    16% (5)
  • C
    71% (22)
  • D
    3% (1)

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