Companies X and Y have been offered the following rates per annum on a $50 million...
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Companies X and Y have been offered the following rates per annum on a $50 million 5-year loan: Fixed Rate Company X Company Y Floating Rate LIBOR + 0.2% LIBOR + 0.5% 3.40% 4.40% Company X requires a floating-rate loan; company Y requires a fixed-rate loan. Design a swap that will net a bank, acting as intermediary, 0.200% per annum and will be equally attractive to X and Y. Draw a graph for your answer. Companies X and Y have been offered the following rates per annum on a $50 million 5-year loan: Fixed Rate Company X Company Y Floating Rate LIBOR + 0.2% LIBOR + 0.5% 3.40% 4.40% Company X requires a floating-rate loan; company Y requires a fixed-rate loan. Design a swap that will net a bank, acting as intermediary, 0.200% per annum and will be equally attractive to X and Y. Draw a graph for your answer.
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