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NEW QUESTION: 1
H Company has a fixed rate load at 10.0%, but wishes to swap to variable. It can borrow at LIBOR 8%.
The bank is currently quoting swap rates of 3.1% (bid) and 3.5% (ask).
What net rate will H Company pay if it enters into the swap?
A. LIBOR +6.5%
B. LIBOR +8%
C. LIBOR +3.1%
D. LIBOR +6.9%