A company has borrowed money for five years at 5%. Explain how it can use the quotes
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A company has borrowed money for five years at 5%. Explain how it can use the quotes in Table 5.5 to convert this to a floating‐rate liability.
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Table 5.5 Swap Quotes Made by a Market Maker (percent per annum) for SOFR Swaps Maturity (years) Bid Ask Swap Rate 2.55 2.58 2.97 3.00 2 3 4 570 10 3.15 3.19 3.26 3.30 3.40 3.44 3.48 3.52 2.565 2.985 3.170 3.280 3.420 3.500
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