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Suppose firm ABC has access to fixed rate 7.5%, and floating rate of LIBOR + 1.5%, while XYZ had access to fixed rate 7% and

Suppose firm ABC has access to fixed rate 7.5%, and floating rate of LIBOR + 1.5%, while XYZ had access to fixed rate 7% and floating rate LIBOR + 0.5%. For these two firms:

Correct Answer: A Swap would help if ABC wants floating and XYZ wants the fixed rate

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