Review the material in chapter 23 on hedging with swap


Review the material in Chapter 23 on hedging with swap contracts and the role of the swap dealer. Then refer to Figure 23.6 on page 764 in your course text Fundamentals of Corporate Finance tenth edition.

An example of an interest rate swap created by you where the Swap Dealer (you) makes a spread of 50 basis points (0.5%). You may not use the exact rates as shown in Figure 23.6 of the course text.

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Financial Management: Review the material in chapter 23 on hedging with swap
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