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On January 1 , 2 0 2 5 , ABC Corp. issued 1 0 - year, $ 1 0 0 , 0 0 0 bonds
On January ABC Corp. issued year, $ bonds at par. The bonds make payments annually on December at a stated fixed rate of interest of
On January ABC Corp. also entered into an interest rate swap. In this arrangement, ABC Corp. paid variable interest rates to a swap bank and in return, the swap bank paid fixed interest to ABC Corp.
Interest rates during the first year of the interest rate swap were the following:
tableDateFixed rate,Market rateJanuary
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