Consider a company that has 10m of floating rate bonds, Ask an Expert

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Consider a company that has $10M of floating rate bonds outstanding, with the bonds paying an interest rate of LIBOR + 3%. Assume the company takes a fixed payer position in a 5%/LIBOR swap. What is the net effective interest rate the company is paying, considering both the swap and the floating rate bonds?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92756021

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