Executive of Diamond Corporation Ltd (a diamond mining corporation and client of the bank), James indicates that he has a view that interest rates will fall and while he has a fixed interest loan comprising debentures issued for his business of $5,000,000, his company is paying 7% on these debentures he would like to be in a position to take advantage of the fall in interest rates and change the interest rate to a variable rate. The following day, you are at a lunch with a friend Luke Washington, the Chief…
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