Question: Alpha and Beta Companies can borrow for a five-year term at the following rates: Assume the swap bank is quoting five-year dollar interest rate swaps

Alpha and Beta Companies can borrow for a five-year term at the following rates: Assume the swap bank is quoting five-year dollar interest rate swaps at 9.40%9.60% against Ll8OR flat. Develop an interest rate swap in which both Alpha and Beta have an equal cost savings in their borrowing costs. Assume Alpha desires floating-rate. debt and Beta desires freed-rate debt

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