Question
1. If a firm has borrowed $5m at a floating rate of LIBOR + 75 basis points, and then enters into a swap to receive
1. If a firm has borrowed $5m at a floating rate of LIBOR + 75 basis points, and then enters into a swap to receive LIBOR and pay 6% fixed on $5m notional, what is the firm's effective interest rate on its borrowing?
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Authors: G. R. Tiberius
1st Edition
B099TLJRT2, 979-8541466690
