Under ASC 815, a fair value hedge of a debt instrument is used to hedge

Under ASC 815, a fair value hedge of a debt instrument is used to hedge

Under ASC 815, a fair value hedge of a debt instrument is used to hedge:

A. The fair value of the debt

B. The interest rate risk of the debt

C. The credit risk of the debt

D. The foreign currency risk of the debt

Answer: A

Explanation: Fair value hedges hedge the fair value of a recognized asset or liability (e.g., debt).