A swap dealer quotes that the rate on a plain vanilla swap, Ask an Expert

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A swap dealer quotes that the rate on a plain vanilla swap, for it to pay fixed, is the five-year Treasury rate plus 10.

To receive fixed, the dealer quotes the rate as the five-year Treasury rate plus 15. Assuming the five-year Treasury rate is 7.60 percent, explain what these quotes mean.

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Category:- Basic Finance
Reference No.:- M92078121

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