Question: answer must be in 100-200 words ABC can borrow at either a fixed rate of 11% or a floating rate of LIBOR +1% XYZ can

answer must be in 100-200 words

answer must be in 100-200 words ABC can borrow at

ABC can borrow at either a fixed rate of 11% or a floating rate of LIBOR +1% XYZ can borrow at either a fixed rate of 10% or a floating rate of LIBOR + 3% The swap dealer can help them meet and negotiate for a fee of 2% of the deal Construct a mutually beneficial swapping arrangement if ABC and XYZ decide to share the available QSD equally and show that the dealer is satisfied with the deal as well

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