Business Studies · Financial Management
Which TWO of the following statements concerning the interest rate risk management method of 'smoothing' are true? 1. The debt portfolio will consist of a mixture of fixed and floating rate debt. 2. Interest payments will still increase if the interest rate rises. 3. Investments with a fixed cash flow will be financed with fixed-rate debt. 4. Full benefit will be obtained from a fall in interest rates.
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1 and 2
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