Description of this paper

IBM and AT&T decide to swap $1 million loans.

Description

solution


Question

IBM and AT&T decide to swap $1 million loans. IBM currently pays 9.0% fixed and;AT&T pays 8.5% on a LIBOR? 0.5% loan. What is the net cash flow for IBM if they swap;their fixed loan for;a LIBOR? 0.5% loan and LIBOR rises to 8.5%?

 

Paper#21178 | Written in 18-Jul-2015

Price : $27
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