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24. The following graph depicts a swap transaction between company A, company B and the bank acting as the intermediary: 7.5% 7.8% Company A Swap
24. The following graph depicts a swap transaction between company A, company B and the bank acting as the intermediary: 7.5% 7.8% Company A Swap Bank Company B LIBOR LIBOR 7.7% LIBOR +0.4% Bank X Bank Y Due to engaging in this swap transaction, company A manages to transform is fixed rate payment of 7.7% to a floating rate payment of: a. LIBOR +0.2% b. LIBOR -0.2% c. LIBOR - 7.5% d. LIBOR +7.7% 25. Which of the following aspects of cash management should an Chief Financial Officer of a multinational consider: a. The size of cash balances b. The currency in which these cash balances are denominated c. Where to locate these cash balances d. All of the above
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