Question
A company can borrow funds for five years at LIBOR minus 30 basis points. The five-year swap rate is 4%. At what fixed rate of
A company can borrow funds for five years at LIBOR minus 30 basis points. The five-year swap rate is 4%. At what fixed rate of interest can the company borrow? (Ignore day count issues)
A) 0.3% B) 0.7% C) 3.7% D) 4.3%
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Technology And Finance Challenges For Financial Markets Business Strategies And Policy Makers
Authors: Morten Balling, Frank Lierman, Andy Mullineux
1st Edition
041529827X, 978-0415298278
