Use the same data as in the previous exercise, except that you now swap the loan into
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Use the same data as in the previous exercise, except that you now swap the loan into floating rate (at libor). What are the payments on the loan, on the swap, and on the combination of them? Is there a gain if you could have borrowed nzd at libor + 1 percent?
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Thus the 1 percent spread above libor that you would have paid on a direct floating rate loan o...View the full answer
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Related Book For
International Finance Putting Theory Into Practice
ISBN: 978-0691136677
1st edition
Authors: Piet Sercu
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