Estimate the interest rate paid by P&G on the 5/30 swap in Business Snapshot 5.4 if (a)
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(a) The CP rate is 6.5% and the Treasury yield curve is flat at 6%
(b) The CP rate is 7.5% and the Treasury yield curve is flat at 7% with semiannual compounding.
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a When the CP rate is 65 and Treasury rates are 6 with semiannual compounding the CMT is 6 and an ...View the full answer
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