Question: 1. Given the following Problem Table Two. a. Does either company have an absolute advantage? Explain in Detail. b. Does either company have a relative

1. Given the following Problem Table Two. a. Does either company have an absolute advantage? Explain in Detail. b. Does either company have a relative comparative advantage. Explain in Detail c. Design a swap with diagrams proved both parties can profit from. Prove both parties can profit from swapping. d. Prove both parties can profit from swapping. Problem One Table Fixed 6% 7% Company A Company B Floating Libor Libor + .5% 2. Given the following Problem Table Two. e. Does either company have an absolute advantage? Explain in Detail. f. Does either company have a relative comparative advantage. Explain in Detail g. Design a swap with diagrams proved both parties can profit from. Prove both parties can profit from swapping. h. Prove both parties can profit from swapping. Problem Two Table Fixed 8% 5% Company X Company Y Floating T-Bill + 1% T-Bill + 3%
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