Question: The LIBOR/swap curve is flat at 3% with continuous compounding and a 4-year with a coupon of 4% per annum (paid semiannually) sells for 101.

The LIBOR/swap curve is flat at 3% with continuous compounding and a 4-year with a coupon of 4% per annum (paid semiannually) sells for 101. How would an asset swap on the bond be structured? What is the asset swap spread?

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