Question: Explain how a 10-year, 8%/LIBOR callable swap cancelable after five years can be created with positions in a 10-year 8%/LIBOR generic swap and a five-year

Explain how a 10-year, 8%/LIBOR callable swap cancelable after five years can be created with positions in a 10-year 8%/LIBOR generic swap and a five-year receiver swaption on a five-year 8%/LIBOR swap.

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