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A firm can issue one of the listed products and convert them into the floating rate using IR swaps (LIBOR for 3.7% fixed). What is

A firm can issue one of the listed products and convert them into the floating rate using IR swaps (LIBOR for 3.7% fixed). What is the lowest floating rate that the firm can get?

Fixed rate note: 4%

Simple FRN: L + 0.5%

Inverse floater: 7.6% - L

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