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Star Bank has to pay an interest rate of LIBOR + 2% on its certificates of deposit. Star Bank receives an interest rate of 5%

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Star Bank has to pay an interest rate of LIBOR + 2% on its certificates of deposit. Star Bank receives an interest rate of 5% on its loans. Suppose LIBOR goes up from 2% to 4%. a) Is the change in LIBOR good for Star Bank? Explain your answer b) Can Star Bank benefit from a swap

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