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A swap bank has a quote for a five-year swap with semiannual payments is 3.503.60 percent. A company with a fixed borrowing cost of 5%
A swap bank has a quote for a five-year swap with semiannual payments is 3.503.60 percent. A company with a fixed borrowing cost of 5% can get a float rate borrowing cost of:
1. LIBOR - 1.4%
2. LIBOR + 1.5%
3. LIBOR - 1.5%
4. LIBOR + 1.4%
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