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10 million USD, 5 year @ 1-year Libor + 200 bps. 1 year Libor is 0.75%.
So if US Fed is intensifying intensify its raising of short term interest rates, does it mean the new interest rate is 0.75% + 2% = 2.75%.
Therefore amount of interest per year is 10 mil USD x 2.75% ? and the risk im exposed to is foreign exhange risk?
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