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Commercial bank A and Savings bank entered into a swap contract. The swap has a notion principal amount of 100 million and cals for Commercial

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Commercial bank A and Savings bank entered into a swap contract. The swap has a notion principal amount of 100 million and cals for Commercial Bank A to make annual floating interest rate payment of LIBOR minus 1% to Savings Bank B. in return, Savings Bank 8 pays fod 8% interest rate to Commercial Bank A. I LIBOR is 8%, what net payment? the Commercial Bank A Savings Bank Pays LIBOR-1 5100 Recewes LIBOR-IN on 100 millon Recenes 8% 5100 milio Pays $100 million A Netpay is O Can't get the answer based on the given information O Savings Bank B pays Commercial Bank A by $1 million Commercial Bank A pays Savings Bank B by $1 million

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