What is the dealer bid-ask spread

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Reference no: EM131787255

Suppose that a dealer quotes these terms on a five-year swap: fixed-rate payer to pay 4.4% for LIBOR and fixed-rate receiver to pay LIBOR for 4.2%.

a. What is the dealer's bid-ask spread?

b. How would the dealer quote the terms by reference to the yield on five-year Treasury notes?

Reference no: EM131787255

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