Solved: What is the fixed-floating rate swap, Financial Accounting

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What is the fixed-floating rate swap

Response to the following problem:

A commercial bank has fixed-rate long-term loans in its asset portfolio and variable-rate CDs in its liability portfolio. Bank managers believe interest rates will increase in the future. What side of a fixed-floating rate swap would the commercial bank need to take to protect against this interest rate risk?

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Financial Accounting: What is the fixed-floating rate swap

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