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    Business
  3. Study Set
    Financial Institutions Instruments and Markets
  4. Exam
    Exam 21: Interest Rate Swaps, Cross-Currency Swaps and Credit Default
  5. Question
    If a Company with a Fixed-Rate Debt of 11% Enters
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If a Company with a Fixed-Rate Debt of 11% Enters

Question 44

Question 44

Multiple Choice

If a company with a fixed-rate debt of 11% enters into a swap and pays floating-rate debt of 8% and receives fixed-rate payments of 9%,its net cost of debt becomes:


A) 9%
B) 10%
C) 11%
D) 12%

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