The swap spread is quoted as 50 bps. If the five-year US Treasury bond is yielding 2%,

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The swap spread is quoted as 50 bps. If the five-year US Treasury bond is yielding 2%, the rate paid by the fixed payer in a five-year interest rate swap is closest to:

A. 0.50%.

B. 1.50%.

C. 2.50%.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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Question Posted: Nov 05, 2023 12:31 AM

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The swap spread is quoted as 50 bps. If the five-year US Treasury bond is yielding 2%,

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Fixed Income Analysis

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