In what ways could the client use an interest rate cap
Problem
In what ways could the client use an interest rate cap to reduce exposure to interest rate movements on its cost of debt? Include an explanation of any disadvantages of using the cap vs. no hedge at all.
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In what ways could the client use swaps to reduce exposure to interest rate movements on its cost of debt?
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In what ways could the client use an interest rate cap to reduce exposure to interest rate movements on its cost of debt?
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