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Ford has a 5 year $100m foxed rate loan with Citibank at 5.9 % annual...

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Finance

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Ford has a 5 year $100m foxed rate loan with Citibank at 5.9 % annual rate). Ford now thinks rates will go lower and calls Goldman Sachs for a swap and receives a quote of 2.90%/3.00% (annual rate) against 6m LIBOR flat and executes the swap. Assume at the next rate reset 6m LIBOR IS 15 (annual rate. What is Ford's net effective annual Interest rate for that rate reset in annual terms but do not put in the signleg 5.15 -5.15)

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