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What is the net settlement payment

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Reference no: EM133058474

Your firm has quarterly floating rate payment obligations for the next year with a face value of $10mill. You enter into a pay fixed receive floating swap with a fixed rate of 3.5%. Current 3 month LIBOR is 3.25%.

If the 3mth spot LIBOR rates in 3, 6 and 9 months are: 3.6%, 3.75% and 3.75%

What is the net settlement payment in 6 months time?

Reference no: EM133058474

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