Choice "B" is correct.  An interest rate swap agreement would be effective in hedging the risk associated with interest rate fluctuations. A swap agreement is a private agreement between two parties, generally assisted by an intermediary, to exchange future cash payments. In this case, the company would most likely enter into an interest rate swap in which it would pay another party a fixed rate of interest in exchange for receipt of payments of a floating rate of interest. The company would then use the floating interest payments received to pay the interest on its floating-rate bonds. In this way, the company would use the swap agreement to convert its interest payments from floating-rate to fixed-rate.Choice "d" is incorrect. A structured short term note would not be effective in hedging the interest rate risks associated with long term floating rate bonds. Long term rates will fluctuate based on the expectations associated with the long term bond market. Short term rates at a point in time are based on different assumptions by investors and lenders.Choice "a" is incorrect. Forward contracts on commodities have a lower likelihood of effectively hedging interest rate risk than an interest rate swap. The financial markets that impact interest rates are more directly connected to interest rates than commodities.Choice "c" is incorrect. Futures contracts on equities have a lower likelihood of effectively hedging interest rate risk than an interest rate swap. The financial markets that impact interest rates are more directly connected to interest rates than equities.