If the fixed rate on a new par value two-year swap were at 5%, how much would
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If the fixed rate on a new par value two-year swap were at 5%, how much would a swap dealer pay or charge to assume an existing fixed-payer’s position on a 5.5%/LIBOR generic swap with two years left to maturity and notional principal of $20 million? How much would the dealer pay or charge if the fixed rate on a new par value two-year swap were at 6%?
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