7.1. Companies A and B have been offered the following rates per annum on a Rs....

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7.1. Companies A and B have been offered the following rates per annum on a Rs. 1,00,00,000 loan for 5 years. Fixed rate Floating rate Company A Company B MIBOR +0.1% MIBOR +0.9% 12.0% 14.4% Company A requires a floating rate loan; company B requires a fixed rate loan. Design a swap that will net a bank, acting as intermediary, 0.1% per annum and that will appear equally attractive to both companies. 7.1. Companies A and B have been offered the following rates per annum on a Rs. 1,00,00,000 loan for 5 years. Fixed rate Floating rate Company A Company B MIBOR +0.1% MIBOR +0.9% 12.0% 14.4% Company A requires a floating rate loan; company B requires a fixed rate loan. Design a swap that will net a bank, acting as intermediary, 0.1% per annum and that will appear equally attractive to both companies.