8. Suppose Microsoft is paying LIBOR + 2% per annum to its lenders. If Microsoft enters into a interest rate swap with Intel to receive LIBOR+1 and pay fixed 5.9%, what will be the net effect to Microsoft's payment?© BrainMass Inc. brainmass.com October 10, 2019, 12:04 am ad1c9bdddf
The net effect on Microsoft will be
=LIBOR+2% - LIBOR - 1% + ...
The net effect to Microsoft's payment is figured.