Suppose that a dealer quotes these terms on a five-year swap: fixed-rate payer to pay 4.4% for

Question:

Suppose that a quotes these terms on a five-year swap: fixed-rate payer to pay 4.4% for LIBOR and fixed-rate receiverto pay LIBOR for 4.2%.
Answer the below questions.
(a) What is the dealer’s bid-asked spread?
(b) How would the quote the terms by reference to the yield on five-year Treasury notes? Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...