Hello sir
I hope you are doing well.
Sir there is a question in p4 kaplan exam kit, it asks about the fixed rate that the bank would want us to pay to the bank in an interest rate swap in exchange for receiving a variable rate minus 30 basis points.
It is a 4 year interest rate swap and we have borrowed $20m in the form of variable rate plus basis points.
I am not sure how i would attempt a question like this..
kindly help me with this
Best regards
Ask the Tutor ACCA AFM
KENAND CO
I explain how swaps work in my free lectures on interest rate risk management.
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