Question: 5. Microsoft issues a four year, floating-rate bond for the amount of $100 Million. It pays annually to bondholders. Because Microsoft would prefer to have
5. Microsoft issues a four year, floating-rate bond for the amount of $100 Million. It pays annually to bondholders. Because Microsoft would prefer to have a fixed rate payment, it enters into a SWAP with Citibank. a) Explain the conditions of this SWAP b) Which is the final fixed rate that Microsoft has to pay? 5. Microsoft issues a four year, floating-rate bond for the amount of $100 Million. It pays annually to bondholders. Because Microsoft would prefer to have a fixed rate payment, it enters into a SWAP with Citibank. a) Explain the conditions of this SWAP b) Which is the final fixed rate that Microsoft has to pay
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