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Company H is a high credit-worthy borrower. Company L is a low credit-worthy borrower. Their preference and current status are shown below: Company Preferred

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Company H is a high credit-worthy borrower. Company L is a low credit-worthy borrower. Their preference and current status are shown below: Company Preferred Rate H Fixed L Floating Currently Borrowing at Floating Fixed In an interest rate swap: O The swap dealer will pay a fixed rate to H and receive a floating rate from H The swap dealer will receive a fixed rate form H and pay a floating rate to H

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