Desert Trading Company has issued $100 million worth of long-term bonds at a fixed rate of 12%. The firm then enters into an interest rate
Desert Trading Company has issued $100 million worth of long-term bonds at a fixed rate of 12%. The firm then enters into an interest rate swap where it pays LIBOR and receives a fixed 5.1% on notional principal of $100 million. What is the firms overall cost of funds?
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Authors: David Hartzell, Andrew E. Baum
2nd Edition
1119526094, 978-1119526094
