As of the second reset date find out the price of the swap

Reference no: EM13460774

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 9.75 percent annually on a notional amount of DM15,000,000 and receive LIBOR - ½ percent. As of the second reset date, determine the price of the swap from the corporation's viewpoint, assuming that the fixed-rate at which it can borrow has increased to 10.25 percent.

Reference no: EM13460774

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