General Motors (GM) wants to swap out of $15,000,000 of fixed interest rate debt and into floating

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General Motors (GM) wants to swap out of $15,000,000 of fixed interest rate debt and into floating interest rate debt for 3 years. Suppose the fixed interest rate is 8.625% and the floating rate is dollar LIBOR. What semiannual interest payments will GM receive, and what will GM pay?

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International Financial Management

ISBN: 978-0132162760

2nd edition

Authors: Geert Bekaert, Robert J. Hodrick

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