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Johnson Industries is currently paying a variable rate of LIBOR + 0.5% on a loan and desires fixed rate loan payment exposure. Refinancing is currently

Johnson Industries is currently paying a variable rate of LIBOR + 0.5% on a loan and desires fixed rate loan payment exposure. Refinancing is currently not available, so Johnson Industries decide to pursue an interest rate swap agreement. The swap terms are LIBOR for 2.5%. What is the after-swap loan cost for Johnson Industries and is it variable or fixed?

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