Question
Kroger wants to borrow $50 million at a fixed rate. Krogers bank quotes a fixed rate of 7.74% or a floating rate of LIBOR +
Kroger wants to borrow $50 million at a fixed rate. Krogers bank quotes a fixed rate of 7.74% or a floating rate of LIBOR + 2.54%. A swap bank quotes an interest rate swap as 3.00-3.48 against LIBOR. If Kroger enters into a swap agreement how much will Kroger send the swap bank if LIBOR is 2.17%?
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
12th Edition
0357442156, 978-0357442159
