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Consider a $30mm notional principal interest rate swap with a fixed rate of 7%, paid quarterly on the basis of 90 days in the quarter
Consider a $30mm notional principal interest rate swap with a fixed rate of 7%, paid quarterly on the basis of 90 days in the quarter and 360 days in the year. The first floating payment is set at 7.2%. Calculate the first net payment and identify which party, the party paying fixed or the party paying floating pays.
| Consider a $30mm notional principal interest rate swap with a fixed rate of 7%, paid quarterly on the basis of 90 days in the quarter and 360 days in the year. |
| The first floating payment is set at 7.2%. Calculate the first net payment and identify which party, the party paying fixed or the party paying floating pays. |
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Economics
Authors: R. Glenn Hubbard
6th edition
978-0134797731, 134797736, 978-0134106243
