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Veidt Enterprise has arranged to borrow $50 million at SOFR + .40%. It has also entered into a swap in which it receives SOFR and
Veidt Enterprise has arranged to borrow $50 million at SOFR + .40%. It has also entered into a swap in which it receives SOFR and pays a fixed rate of 6% on a notional principal of $50 million. What is the effective fixed rate which Veidt Enterprises will be paying during the life of the swap? A) 5.8% B) 6.0% C) 6.2% D) 6.4%
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