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elf_fu elf_fu
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8 years ago
IBM and AT&T decide to swap $1 million loans. IBM currently pays 9.0% fixed and AT&T pays 8.5% on a LIBOR + 0.5% loan. What is the net cash flow for IBM if they swap their fixed loan for a LIBOR + 0.5% loan and LIBOR rises to 8.5%?
A) -$50,000
B) $50,000
C) -$90,000
D) 0
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Derivatives Markets

Derivatives Markets


Edition: 3rd
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phuongha2892phuongha2892
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8 years ago
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