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Business, 13.06.2020 19:57 navyaseth620

A company has $11 millions of fixed rate bonds outstanding, with a coupon rate of 12.1% paid semi-annually. The company also takes the floating payer position in a 3.8%/LIBOR swap with the same notional principal. What is the net cashflow associated with this synthetic floating rate loan, if the relevant LIBOR is 6.9%

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