Question
It costs AAPL 3.85% to borrow in the fixed rate market and 3mLIBOR +25 to borrow in the floating rate markets for 2 years. Two
It costs AAPL 3.85% to borrow in the fixed rate market and 3mLIBOR +25 to borrow in the floating rate markets for 2 years. Two year Swap rates are quoted at 3.65%/3.66% by a Swaps dealer. Assuming they want to have a floating rate liability, how could they utilize the swaps market to lower their borrowing costs and by how many basis points?
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Financial Accounting
Authors: Robert Libby, Patricia Libby, Frank Hodge
9th edition
290-1259222138, 1259222136, 978-1259222139
