Question: A market maker quotes 40-50 on a five-year 6-month Libor swap, it means that A. The market maker is willing to enter a swap receiving

A market maker quotes 40-50 on a five-year 6-month Libor swap, it means that

A. The market maker is willing to enter a swap receiving fixed 50 basis points above the 6-month Libor rate

B. The market maker is willing to enter a swap receiving fixed 50 basis points above the five-year benchmark bond yield and paying the 6-month Libor rate

C. The market maker is willing to enter a swap receiving fixed 40 basis points above the five-year benchmark bond yield and paying the 6-month Libor rate

D. The market maker is willing to enter a swap paying fixed 40 basis points above the 6-month Libor rate

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