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Which of the following describes the 5-year swap rate? A. The fixed interest rate that will be paid will always be lower than the LIBOR
Which of the following describes the 5-year swap rate?
A. The fixed interest rate that will be paid will always be lower than the LIBOR rate
B. The fixed interest rate that will be received will always be higher than the LIBOR rate
C. In the absence of arbitrage opportunities, the fixed interest rate must always be equal
to the LIBOR rate
D. None of the above
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