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16. LIBOR versus Other Rates. Waste Management, a U.S. firm, has a surplus amount of USD 20 million available for 180 days. Its U.S. banker

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16. LIBOR versus Other Rates. Waste Management, a U.S. firm, has a surplus amount of USD 20 million available for 180 days. Its U.S. banker offers a fixed-rate deposit with interest calculated using a continuously compounded rate of 5 percent. a. Calculate the FV of the deposit. b. Assume that Eurobanks compete for this deposit and offer an interest rate using the actual/360 convention. At what rate will these Eurobanks be attractive to Waste Management

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