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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 15

Question 15

Multiple Choice

If a company with a fixed-rate debt of 11% enters into a swap and pays floating-rate debt of BBSW+1.20% and receives fixed-rate payments of 9%,its net cost of debt becomes:


A) 11%
B) BBSW+0.20%
C) BBSW+2.20%
D) 12%

Correct Answer:

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