Question: 5. A company has a fixed rate note that pays 6% for 3-years. The swap market will pay T + 45 versus Libor. The current

5. A company has a fixed rate note that pays 6% for 3-years. The swap market will pay T + 45 versus Libor. The current 3-year treasury is 4.5%. How can the company use a swap to convert the interest payments to a floating rate liability?

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