You have borrowed $3.6 million at a rate of LIBOR +1.1%, and you wish to completely eliminate your interest rate risk. To do so, you
You have borrowed $3.6 million at a rate of LIBOR +1.1%, and you wish to completely eliminate your interest rate risk. To do so, you are going to use a interest rate swap where the fixed leg pays 3.6% and the variable leg pays LIBOR +1. What would your yearly interest payment be if you you used this swap to hedge against interest rate movements?
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Authors: Frank Fabozzi, Steven Mann
8th Edition
0071768467, 978-0071768467
