Question: 1 A Moving to another question will save this response. Question 3 les A and B have been offered the following rates per annum on
1 A Moving to another question will save this response. Question 3 les A and B have been offered the following rates per annum on a $20 million five year loan Fixed Rate Floating Rate 4.ON UBOR 0.4% B 52N UBOR.0.9% want to deign a SWAP that will not a francial intermediwy, that is swap dealer, 0.1% per annum and that will appear equally attractive to both companim. much each company many benefit from this SWAP If they plt potential gains equally 0.7% 0.3% 0.5% 0.35%
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