Show how a firm that has issued a floating-rate bond with a coupon equal to the LIBOR
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Show how a firm that has issued a floating-rate bond with a coupon equal to the LIBOR rate can use swaps to convert that bond into synthetic fixed-rate debt. Assume the terms of the swap allow an exchange of LIBOR for a fixed rate of 8%.
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ISE Investments
ISBN: 9781260571158
12th International Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
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