TRY THIS.What is ABCs Cost of Funds?
All-In cost (pays) = L-0.25%
The swap rate is 7.75%
To know whether XYZ or ABC improved their
Funding costs, you would need to know
In fixed-rate interest swap agreements, the party that pays a fixed rate of interest
while receiving floating rate interest from the counterparty. A fixed-rate payer is
short the bond market and is long a swap.
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Welcome to Wall Street Preps Crash Course in Corporate Finance Concepts, Third Edition
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