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A company enters into a five year interest rate swap with a swap bank in which it agrees to pay the swap bank a fixed
A company enters into a five year interest rate swap with a swap bank in which it agrees to pay the swap bank a fixed rate of 9.75% annually on a notional amount of 15,000,000 and receive LIBOR. One year into the swap (with four years remaining until maturity), the fixed rate side of the swap has increased to 10.25%. What is the value of the swap to the company?
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