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A Swap Bank Makes the Following Quotes for 5-Year Swaps

Question 100

Multiple Choice

A swap bank makes the following quotes for 5-year swaps and AAA-rated firms: A swap bank makes the following quotes for 5-year swaps and AAA-rated firms:   A) The bank stands ready to pay $5.2% against receiving dollar LIBOR on 5-year loans. B) The bank stands ready to receive €7% against receiving dollar LIBOR on 5-year loans. C) The bank stands ready to pay €7% against receiving dollar LIBOR on 5-year loans. D) None of the above


A) The bank stands ready to pay $5.2% against receiving dollar LIBOR on 5-year loans.
B) The bank stands ready to receive €7% against receiving dollar LIBOR on 5-year loans.
C) The bank stands ready to pay €7% against receiving dollar LIBOR on 5-year loans.
D) None of the above

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