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ple Choices
(Choose 1 answer)
(27613) 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%?
A. -$50,000
Β. $50,000
C. -$90,000
D. 0

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