Question: Suppose that the LIBOR/swap curve is flat at 6% with continuous compounding and a five-year bond with a coupon of 5% (paid semiannually) sells for

Suppose that the LIBOR/swap curve is flat at 6% with continuous compounding and a five-year bond with a coupon of 5% (paid semiannually) sells for 90.00. How would an asset swap on the bond be structured? What is the asset swap spread that would be calculated in this situation?

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