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  1. J

    Hull, Swaps (Apple & Citi example)

    Hi everyone, Can someone please explain why the floating rate portion in Hull’s Apple-Citibank example is multiplied by 0.5? (See page161) Apple pays fixed rate (3% pa on a notional principal of $100m) while Citi pays fixed (6m Libor rate prevailing prior to the pmt day * $100m * 0.5). What’s...
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