ibe the cash flows for a 5 year Plain Vanilla Interest Rate Swap. ABC pays 5% fixed, XYZ pays floating. The notional is $100 Million. If LIBOR rises by 1% one month after initiating the swap, does ABC make or lose money on this swap on a mark to market basis? Explain your

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Describe the cash flows for a 5 year Plain Vanilla Interest Rate Swap. ABC pays 5% fixed, XYZ pays floating.  The notional is $100 Million.

If LIBOR rises by 1% one month after initiating the swap, does ABC make or lose money on this swap on a mark to market basis? Explain your reasoning.

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