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umka2103 [35]
2 years ago
14

Desert Trading Company has issued $100 million worth of long-term bonds at a fixed rate of 8%. The firm then enters into an inte

rest rate swap where it pays a LIBOR rate of 5% and receives a fixed 6% on notional principal of $100 million. What is the firm’s effective interest rate on its borrowing?
Business
1 answer:
Sati [7]2 years ago
5 0

Answer:

7%

Explanation:

the firm’s effective interest rate on its borrowing= %paid in form of LIBOR+ % at which bond was issued- % of fixed received.

=5%+ 8%- 6%

=7%

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LO 3 Chad's Chocolates is considering the purchase of a new candy press. The machine under consideration costs $17,550 and would
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Answer:

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James Company began the month of October with inventory of $32,000. The following inventory transactions occurred during the mon
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Requirement 1: [Find attachment 1]

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