SS 13, Reading 40, Section 5.3

I notice that the learning outcomes for SS 13 do not address this section (“Synthetically Removing (Adding) a Call Feature in Callable (Noncallable) Debt”). Does anyone know if this section is optional? Thanks and Happy New Year!

…you could loosely interpret the sentence “demonstrate the use of an interest rate swaption to change the payment pattern of an anticipated future loan” to capture the SS13 reading you mentioned… issuing debt would fall unde an anticipated future loan and by selling or buying a receiver swaption you add or subtract the call option and change the payment pattern…

thanks, strikershank…although, I’m surprised they weren’t more straightforward with that like they were with the other learning outcomes…