The value of a pay-fixed, receive-floating interest a. floating-rate bond minus the value of a fixed-rate bond. b. fixed-rate bond minus the value of a floating-rate bond. c. floating-rate bond minus the value of another floating-rate bond. d. fixed-rate bond minus the value of another fixed-rate bond. e. none of the above correctly identify how this value is found. oblem: (12 points) A US company has entered into an interest rate swap with a dealer in which the notional principal is $50million. The company will pay floating rate LIBOR and receive a fixed rate of 5.75%. Interest is paid semiannually, and the current LIBOR is 5.15%. Calculate the first payment and indicate which party pays which. Assume that the floating-rate payments will be made on the basis of 180/360 and fixed rate payment will be made on the basis of 180/365. 17 29 of 1237 words 17 The value of a pay-fixed, receive-floating interest a. floating-rate bond minus the value of a fixed-rate bond. b. fixed-rate bond minus the value of a floating-rate bond. c. floating-rate bond minus the value of another floating-rate bond. d. fixed-rate bond minus the value of another fixed-rate bond. e. none of the above correctly identify how this value is found. oblem: (12 points) A US company has entered into an interest rate swap with a dealer in which the notional principal is $50million. The company will pay floating rate LIBOR and receive a fixed rate of 5.75%. Interest is paid semiannually, and the current LIBOR is 5.15%. Calculate the first payment and indicate which party pays which. Assume that the floating-rate payments will be made on the basis of 180/360 and fixed rate payment will be made on the basis of 180/365. 17 29 of 1237 words 17