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ABC Corporation Has Entered into a 10-Year Interest Rate Swap

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ABC Corporation has entered into a 10-year interest rate swap with a swap bank.ABC Corp.pays the swap bank a fixed-rate of 6 percent annually on a notional amount of EUR100,000,000 and receives LIBOR - ½ percent.What is the price of the swap on the seventh reset date,assuming that the fixed-rate at which ABC can borrow has decreased to 5%.


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