What semi-annual interest payments will ibm receive

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Reference no: EM13727223

IBM wants to swap out of $10,000,000 of fixed interest rate debt and into floating interest rate debt for 3 years. Assume the fixed interest rate is 7.625 percent and the floating rate is dollar LIBOR. What semi-annual interest payments will IBM receive and what will IBM pay?

(Hint: A table of interest paid and received by IBM and the financial institution will help).

Reference no: EM13727223

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