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A corporation enters into a five-year interest rate swap with a swap bank in which...

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Finance

A corporation enters into a five-year interest rate swap with a swap bank in which it agrees to pay the swap bank a fixed rate of 10.05 percent annually on a notional amount of 15,000,000 and receive LIBOR. As of the second reset date, determine the price of the swap from the corporations viewpoint assuming that the fixed-rate side of the swap has increased to 10.55 percent.

SWAP Price:

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