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Johnson Industries is currently paying a fixed rate of 5.5% on a loan and desires greater certainty with regard to their loan payments. Refinancing is

Johnson Industries is currently paying a fixed rate of 5.5% on a loan and desires greater certainty with regard to their loan payments. Refinancing is currently not available, so Johnson Industries decide to pursue an interest rate swap agreement. The swap terms are LIBOR for 3.5%. What is Johnson Industries after swap loan cost and is it variable or fixed?

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