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Citibank and ABM Company enters into a 5 year interest rate swap a notional principal of $100 million and the following terms:

Citibank and ABM Company enters into a 5 year interest rate swap a notional principal of $100 million and the following terms:every year for the next five years, ABM agrees to pay Citibank 6% and receive from Citibank Libor. Using the following informatioin about LIBOR at the end of each of the next five years, determine the cash flows in the swap.

Year LIBOR %
1 5
2 5.5
3 6.2
4 6
5 6.4

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Citibank and ABM Company enters into a 5 year interest rate swap a notional
principal of $100 million and the following terms: every year for the next five years,
ABM agrees to pay Citibank 6% and...

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