It costs Netflix 2.35% to borrow in the fixed rate market and 3mLIBOR + .25% to borrow in the floating rate markets for 2 years. The two year swap rate is quoted at 2.15%. If Netflix were to use the swap market to lower their floating rate borrowing costs how would they go about it and much would they save in annual interests rate expense?

Answer rating: 100% (QA)

So you enter into an interest rate swap where you pay fix... View the full answer