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A swap agreement calls for Durbin Industries to pay interest annually, based on a rate of 1.5% above the one-year T-bill rate, currently 6%. In
A swap agreement calls for Durbin Industries to pay interest annually, based on a rate of 1.5\% above the one-year T-bill rate, currently 6%. In return, Durbin receives interest at a rate of 6% on a fixed-rate basis. The notional principal for the swap is $50,000. What is Durbin's net interest for the year after entering into the agreement
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