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We consider electromagnetics problems involving composite geometries with coexisting open and closed conductors. Hybrid integral equations are presented to improve the efficiency of the solutions, compared to the conventional electric-field integral equation. We investigate the convergence characteristics of iterative solutions of large composite problems with the multilevel fast multipole algorithm. Following a thorough study of how the convergence characteristics depends on the problem geometry, formulation, and iterative solvers, we provide concrete guidelines for efficient solutions.