E connect Kwang Chen Bodie, Essentials of Invesments, 10e- Prebuilt Instructor Course: Bodle, Essentials of Investments, Toe- Prebuilt Instructor Course INANCE 7 Homework Question 4 (of 10) | save & Exit 11 Suom 10.00 points A corporation has issued a $10 million issue of floating rate bonds on which it pays an interest rato 5% over the LIBOR rate The bonds are seang at par value The fin is on ed th rates are about to rise, and would like to lock na ed interest rate on sbor ngs Therm ses that dealers in the sapmark tae ne ings aps u Rto4%Am arrangement converts the firm's borrowings to a synthetic fxed-rate loan. What interost rate will t pay on that synthetic fixed-rate loan? (Round your answer to 1 decimal place.) Interest rate References Book &Resources Learning Objective: 17-05 Determine how swaps can be used to mitigate interest rate risk Worksheet Autodesk Desktop Connector An update is available Cick here to get it