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2. Why might a company swap a floating rate liability to a fixed rate? 3. A company has 10 year floating rate debt at Libor+50 bps. The current 10-year treasury is 4.50% and 10-year swap Spreads are T +40 versus Libor. What rte can the company lock in for the 10-year debt? Rece ve oreau floot.g 90 Pread 4. An investor owns a 5-year fixed rate bond that yields T +70. The swap market will receive T + 50 versus Libor.The current 5-year treasury is 5%. How can the investor use a swap to convert the interest income to a floating rate asset? f astex 5. A company has a fixed rate note that pays 6% for 3-years. The swap market will pay T + 45 versus Libor. The current 3-year treasury is 4.5%. How can the company use a swap to convert the interest payments to a floating rate liability? 6. A bank will receive T+50 versus Libor or pay T+45 versus Libor. For a $100 IC 50 ed million, 10-year swap what isthe approximate profit that abank earns by entering into both a fixed rate and an offsetting floating rate swap? laabesIM o/ 10 ( 0,000 A company can issue l l billion 5-year yen debt at l .5%. The current YenS exchange rate is 1 10. 5-year yen swap rates area,25% fixed versus US dollar Libor floating. How much, and at what rate, can the company swap the yern 7. financing to floating dollar debt. nk I S