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5. You observe the following interest rate swap quotes: Term Bid (bps) UST Yield 1.37% 3 Years 17 Offer (bps) 19 24 5 Years 1.65%
5. You observe the following interest rate swap quotes: Term Bid (bps) UST Yield 1.37% 3 Years 17 Offer (bps) 19 24 5 Years 1.65% 22 30 7 Years 2.03% 32 Which one of the following statements is true? A. A customer could pay a fixed rate of 1.56% for three years against Libor B. Aswaps dealer would be willing to pay 1.89% for five years against Libor C. A customer could receive a fixed rate of 2.35% for seven years against Libor D. A swaps dealer would be willing to pay 1.56% for three years against Libor
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