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A corporate treasurer sells $10 non-callable 5-year bonds. He sees an attractive 5-year Libor floater at L+25. The 5-year swap curve is TSY 5-year plus
A corporate treasurer sells $10 non-callable 5-year bonds. He sees an attractive 5-year Libor floater at L+25. The 5-year swap curve is TSY 5-year plus 20 bps. The treasurer executes an interest rate swap. What does he do? What is his position after the swap?
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