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  3. 1.2. cade has a fixed rate loan of 7% from the b

1.2. Cade has a fixed rate loan of 7% from the Bank of...

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Finance

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Cade has a fixed rate loan of 7% from the Bank of Joshua. Bradley has a variable rate loan of LIBOR + 2% from the same bank. They both borrowed $100,000 What are their yearly interest payments to the bank E TIBOR is 44 Cade and Bradley entered in an interest rate swap agreement. Cace will pay Bradley LIBOR + 2% and Bradley will pay Cade 6% fixed. What are their net paymarts (to the banks & each other) if LIBOR is now 3% ? Assume a notional value of $100,000

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