Multiple Choice
Suppose a bank charges .8% to arrange the swap and Axil and Bevel split the resulting cost savings.Then Axil will pay ___ for its floating-rate money and Bevel will pay ___ for its fixed-rate money.
A) LIBOR- .7%;7.5%
B) LIBOR + .4%;7.15%
C) LIBOR;7.45%
D) LIBOR + .5%;6.75%
Correct Answer:
Verified
Correct Answer:
Verified
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