Suppose you have an asset with a rate LIBOR + .20%. Show how you could effectively convert this into a 2-year, fixed-ra

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answerhappygod
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Suppose you have an asset with a rate LIBOR + .20%. Show how you could effectively convert this into a 2-year, fixed-ra

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Suppose you have an asset with a rate LIBOR + .20%. Showhow you could effectively convert this into a 2-year, fixed-rateasset by accepting the dealer’s swap. What is the fixed rateyou would earn each six months on your asset (covered by swap)?
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