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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Variable interest loans
So far, we learnt how to hedge against fixed interest loans when we have to borrow in few months time, so the time before it, we hedge against the unfavorable interest rates. But, can we be asked in P4 exam to hedge against Variable interest loans, and if so, what would be the strategy?
The only way you would be asked is by having a swap.
