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Company H and Company B entered into a swap to exchange a fixed rate of 3.5% and a floating rate based on the 6 month
Company H and Company B entered into a swap to exchange a fixed rate of 3.5% and a floating rate based on the 6 month CDOR rate + 0.50% on a notional amount of $ 25M. At the start of the semester, company B renewed the CDOR rate and obtained a rate of 2.85%. Which of the two companies should remit to the other and what will be the amount of this cash flow?
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