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graphically about the annual interest rate flow 16. A bank has sold a loan so that it receives a fixed interest rate of 5%. The

graphically about the annual interest rate flow
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16. A bank has sold a loan so that it receives a fixed interest rate of 5%. The bank swaps that fixed rate immediately after taking out the loan via a swap. The fixed swap rate stands at 4%. We assume that the loan amount remains constant at 100 and that the interest is paid annually. Display graphically the annual interest flows that remain for the bank

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