a) Interserve and Kier Group can borrow for one year at the following rates: < Fixed...

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a) Interserve and Kier Group can borrow for one year at the following rates: < Fixed rate Floating rate i. Interserve Kier Group 4.50% 5.10% LIBOR + 0.15% LIBOR + 0.35%< Develop an interest rate swap in which both companies have an equal saving in their borrowing costs. Assume Interserve desires floating-rate debt and Kier desires fixed- rate debt and that the intermediary swap bank demands a 0.1% fee on the transaction.< F a) Interserve and Kier Group can borrow for one year at the following rates: < Fixed rate Floating rate i. Interserve Kier Group 4.50% 5.10% LIBOR + 0.15% LIBOR + 0.35%< Develop an interest rate swap in which both companies have an equal saving in their borrowing costs. Assume Interserve desires floating-rate debt and Kier desires fixed- rate debt and that the intermediary swap bank demands a 0.1% fee on the transaction.< F

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