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  3. 5. a corporation has issued floating-rate bonds on

5. A corporation has issued floating-rate bonds on which it pays an interest rate 0.5%...

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5. A corporation has issued floating-rate bonds on which it pays an interest rate 0.5% over the LIBOR rate. The bonds are selling at par value. The firm enters into a swap arrangement that pays the firm LIBOR and requires the firm to pay 7%. What is the interest payment the firm ends up paying

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