Suppose you have an asset with a rate LIBOR + .20%. Show how you could effectively convert this into a 2-year, fixed-ra
Posted: Fri Jul 01, 2022 7:47 am
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)?