If the fixed rate on a new par value two-year swap were at (5 %), how much
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If the fixed rate on a new par value two-year swap were at \(5 \%\), how much would a swap dealer pay or charge for assuming an existing 5.5\%/LIBOR floating-rate position on a generic swap with two years left to maturity and notional principal of \(\$ 20\) million? How much would the dealer pay or charge if the fixed rate on a new par value two-year swap were at \(6 \%\) ?
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