Which of the following statements are true with regard to interest rate swaps?

Some companies interest rate swap to deliberately increase their risks because they believe that they are better at predicting future interest rates than the market.

Risk of default is high from the floating interest rate payer if interest rates rise.

When interest rates are falling the risk of default by the fixed interest rate payer is low.

An nicest rate swap is an internal hedging technique.

An interest rate swap is an external hedging technique.