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Business, 01.04.2021 15:30 joejoefofana

Assume that you have an outstanding loan with your bank under which you pay 3% fixed rate. You have entered into a swap agreement for a notional of 100M USD under which every 6 months you agree to pay LIBOR and receive 2.5% fixed. On the date you signed the contract LIBOR is 3%. The exchange of payments under the swap have the effect of modifying your liabilities so that

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Assume that you have an outstanding loan with your bank under which you pay 3% fixed rate. You have...

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