Multiple Choice
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
Correct Answer:

Verified
Correct Answer:
Verified
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