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Set up and solve please You are given the following information: Fixed A 6.534% Floating LIBOR+ LIBOR+ 1.587% 2.500% B 7.578% LIBOR+ 1.587% 7.578% A
Set up and solve please
You are given the following information: Fixed A 6.534% Floating LIBOR+ LIBOR+ 1.587% 2.500% B 7.578% LIBOR+ 1.587% 7.578% A preferred B preferred A not preferred B not preferred 6.534% LIBOR+ 2.500% X 5.053% Swap bank 4.950% LIBOR LIBOR 3.00% LIBOR in t=1 LIBOR in t=2 LIBOR in t=3 4.00% 5.00% Notional size 5,000,000.00 How much money does firm B pay to its bank (NOT the swap bank) in t=3Step by Step Solution
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