Zhao Automotive issues fixed-rate debt at a rate of 7.00%. Zhao agrees to an interest rate swap

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Zhao Automotive issues fixed-rate debt at a rate of 7.00%. Zhao agrees to an interest rate swap in which in pays LIBOR to LEE Financial and Lee pays 6.8% to Zhao. What is Zhao’s resulting net payment?

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Financial management theory and practice

ISBN: 978-1439078099

13th edition

Authors: Eugene F. Brigham and Michael C. Ehrhardt

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Question Posted: Oct 15, 2011 05:30 AM

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Zhao Automotive issues fixed-rate debt at a rate of 7.00%. Zhao agrees to an interest rate swap

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Financial management theory and practice

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