Stagecoaches inc has 100000000 in 5-year floating rate debt, Ask an Expert

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Stagecoaches, Inc. has $100,000,000 in 5-year floating rate debt with an interest rate of LIBOR + 3.0% and quarterly payments.

Describe how the firm can use an interest rate swap to create a net fixed rate on the debt.

Given the current fixed-rate on a 5-year swap, what is the company's net fixed rate (including the swap)?

Build a spreadsheet to show that the firm's net interest payment remains constant when LIBOR changes.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92052045

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