Multiple Choice
Find the fixed rate on a plain vanilla interest rate swap with payments every 180 days (assume a 360-day year) for one year.The prices of Eurodollar zero coupon bonds are 0.9756 (180 days) and 0.9434 (360 days) .
A) 5.9 percent
B) 5 percent
C) 6 percent
D) 5.5 percent
E) 2.95 percent
Correct Answer:
Verified
Correct Answer:
Verified
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