Question: Suppose that a dealer quotes these terms on a five-year swap: fixed-rate payer to pay 4.4% for LIBOR and fixed-rate receiverto pay LIBOR for 4.2%.

Suppose that a dealer quotes these terms on a five-year swap: fixed-rate payer to pay 4.4% for LIBOR and fixed-rate receiverto pay LIBOR for 4.2%.
Answer the below questions.
(a) What is the dealer’s bid-asked spread?
(b) How would the dealer quote the terms by reference to the yield on five-year Treasury notes?

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