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1. IBM wants to swap out of $10,000,000 of fixed interest rate debt and into floating interest rate debt for 3 years. Assume the fixed

1. IBM wants to swap out of $10,000,000 of fixed interest rate debt and into floating interest rate debt for 3 years. Assume the fixed interest rate is 7.625 percent and the floating rate is dollar LIBOR. What semiannual interest payments will IBM receive and what will IBM pay? (Hint: A table of interest paid and received by IBM and the financial institution will help).

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