CIMA Exam CIMAPRA19-F03-1 Topic 2 Question 75 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam

Question #: 75
Topic #: 2

HHH Company has a fixed rate loan at 10.0%, but wishes to swap to variable. It can borrow at the risk-free rate +8%. The bank is currently quoting swap rates of 3.1% (bid) and 3.5% (ask). What net rate will HHH Company pay if it enters into the swap?

ARisk-free rate +6.9%

BRisk-free rate +8%

CRisk-free rate+3.1%

DRisk-free rate +6.5%

Show Suggested Answer

Suggested Answer: C, D, E

by Rolland at Oct 18, 2023, 01:10 PM

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