A German institution has a four-year US dollar-denominated bank loan paying six-month LIBOR + 11/8%. The fixed

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A German institution has a four-year US dollar-denominated bank loan paying six-month LIBOR + 11/8%. The fixed euro–floating rate US dollar interest rate and currency swap is quoted at 4.55–4.67. Determine the total fixed rate interest rate expenses in euros to be paid on the loan if the institution engages in a currency and interest rate swap.

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