Question
For a bank that has floating rate assets yielding L+40 and can issue fixed rate debt at T + 27 and floating at L +
For a bank that has floating rate assets yielding L+40 and can issue fixed rate debt at T + 27 and floating at L + 44, with a swap spread at 14 bp the best strategy is to:
| A. | Issue fixed rate debt because it is cheaper | |
| B. | Issue floating rate debt
| |
| C. | Issue fixed rate debt and enter into an interest swap
| |
| D. | a & b
|
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Financial Management For Decision Makers
Authors: Peter Atrill
9th Edition
1292311436, 978-1292311432
