A corporate borrower has drawn down a US dollar-denominated three-year floating rate credit facility that charges LIBOR
Question:
A corporate borrower has drawn down a US dollar-denominated three-year floating rate credit facility that charges LIBOR + 11/4%. The three-year US dollar interest rate swap is quoted at 0.70–0.80 and the three-year T-Note yields 3.65% p.a. Please determine the indicative fixed rate at which the corporate borrower can lock-in the interest expense on the credit facility for the three-year period.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answered By
Elias Gichuru
am devoted to my work and dedicated in helping my clients accomplish their goals and objectives,providing the best for all tasks assigned to me as a freelancer,providing high quality work that yields high scores.promise to serve them earnestly and help them achieve their goals.i have the needed expertise,knowledge and experience to handle their tasks.
325+ Reviews
859+ Question Solved
Related Book For 
Global Derivatives A Strategic Risk Management Perspective
ISBN: 9781526411679
1st Edition
Authors: Torben Juul Andersen
Question Posted:
