Banks quote interest rate and currency swaps using 6-month LIBOR as a basis for both transactions. How

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Banks quote interest rate and currency swaps using 6-month LIBOR as a basis for both transactions. How can a bank make money if it does not speculate on movements in either interest rates or exchange rates?

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International Financial Management

ISBN: 978-0132162760

2nd edition

Authors: Geert Bekaert, Robert J. Hodrick

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