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Question
A firm agrees to accept annual payments on a $1,000,000 loan with a fixed interest rate of 8% in exchange for making the annual payments on a loan with floating rate payments based on LIBOR. Payments are interest only with principal due in 10 years. If LIBOR falls to 7%, the firm's net cash flow will be:A) $70,000.
B) ($10,000).
C) $10,000.
D) $80,000.
Answer
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Related questions
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