Johnson industries is currently paying a variable rate of, Ask an Expert

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Johnson Industries is currently paying a variable rate of LIBOR+3% on a loan and desires greater certainty with regard to their loan payments. Refinancing is currently not available, so Johnson Industries decide to pursue an interest rate swap agreement. The swap terms are LIBOR for 4%.

a) What is Johnson Industries after swap loan cost?

b) Is it variable or fixed?

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Financial Management, Finance

Category:- Financial Management
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