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Austin Industries is currently paying a L.IBOR + 0.4 percent variable rate on a loan and needs exposure to a f.ixed rate loan payment. There

Austin Industries is currently paying a L.IBOR + 0.4 percent variable rate on a loan and needs exposure to a f.ixed rate loan payment. There is currently no re.financing available, so Austin Industries has agreed to seek an interest r.ate swap deal. The swap terms are 2.4 percent for LI.BOR. For Austin Industries, what is the after-swap l.oan rate and is it variable or f.ixed?

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