Question
For a bank that has floating rate assets yielding L+45 and can issue fixed rate debt at T + 25 and floating at L +
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For a bank that has floating rate assets yielding L+45 and can issue fixed rate debt at T + 25 and floating at L + 40, with a swap spread at 5 bp, the net cost of debt after issuing fixed rate debt and entering into a swap is:
A. T + 15
B. L + 25
C. T + 45
D. L + 20
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Real Estate Finance And Investments
Authors: William Brueggeman, Jeffrey Fisher
13th Edition
0073524719, 9780073524719
