Question
Assume the following scenario Company A (Wants Fixed) Company B (Wants Float) Company C (Wants Float) Fixed 10% 9% 10% Float 7% 8% 10% Amount
Assume the following scenario
|
| Company A (Wants Fixed) | Company B (Wants Float) | Company C (Wants Float) |
| Fixed | 10% | 9% | 10% |
| Float | 7% | 8% | 10% |
| Amount | $1,000,000 | $600,000 | $300,000 |
What is the effective rate of borrowing $1,000,000 for company A after using swaps?
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs
10th edition
133052311, 978-0133052312
