Smith Company and Jones Company enter into an interest rate swap, with Smith paying fixed interest to

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Smith Company and Jones Company enter into an interest rate swap, with Smith paying fixed interest to Jones, and Jones paying floating interest to Smith. Smith now goes bankrupt and so defaults on its remaining interest payments. What is the financial damage to Jones Company?
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Fundamentals of Multinational Finance

ISBN: 978-0205989751

5th edition

Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman

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