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A company can borrow money for five years at LIBOR plus 20 basis points. The five year fixed swap rate against floating LIBOR is 5%.
A company can borrow money for five years at LIBOR plus 20 basis points. The five year fixed swap rate against floating LIBOR is 5%. What all-in fixed rate of interest will the company pay if it borrows at LIBOR plus 20 basis points and pays fixed on a five-year interest rate swap?
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Fundamentals Of Futures And Options Markets
Authors: John Hull
9th Global Edition
1292422114, 9781292422114
