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biancawoods biancawoods
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Assume company L wants to pay a floating rate and company N wants to pay a fixed rate. Company L is quoted 11% fixed-rate financing or a floating rate of LIBOR + 0.3%. In contrast, company N is quoted a fixed-rate financing at 14% and a floating rate financing at LIBOR + 0.75%. Calculate the net savings (%) to both parties if a swap is entered into between L and N if N pays L 12.0% and L pays N LIBOR.
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Corporate Finance

Corporate Finance


Edition: 5th
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MariannaGMariannaG
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biancawoods Author
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A month ago
Good timing, thanks!
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Yesterday
Helped a lot
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2 hours ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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