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Suppose EAST.Inc pays a fixed rate of 9.5 percent and WEST Inc. pays a floating rate of LIBOR +1.5 percent. They entered a swap where EAST Inc agrees to pay LIBOR to WEST Inc. and WEST Inc. agrees to pay 9 percenr to EAST Inc.a. What is the net paying interest rate for EAST Inc? b. What is the net paying Interest rate for WEST Inc?

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Management Theories, Management Studies

Category:- Management Theories
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