Determine the cash flows in the swap

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Reference no: EM131315404

Citibank and ABM Company enter into a five-year interest rate swap with a notional principal of $100 million and the following terms:

every year for the next five years, ABM agrees to pay Citibank 6 percent and receive from Citibank LIBOR.

Using the following information about LIBOR at the end of each of the next fi ve years, determine the cash flows in the swap.

Year	LIBOR(%)
1	5.0
2	5.5
3	6.2
4	6.0
5	6.4

Reference no: EM131315404

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