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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. |
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