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- Companies A and B enter into a 2-year plain vanilla interest rate swap. The swap cash flows are exchanged semiannually, and the reference rate
- Companies A and B enter into a 2-year plain vanilla interest rate swap. The swap cash flows are exchanged semiannually, and the reference rate is 6-month LIBOR. The LIBOR rates are shown below. The fixed rate of the swap is 4.2%, and the notional principal is $50 million. Compute the cash flows for Company A, the fixed receiver (floating payer) of this swap
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