Based on the rates given, determine if there is a scenario making it economically favorable for both Counter Party Bank A (AAA) and Counter Party Company B (BBB) to engage in a Fixed for Floating Interest Rate Swap. Show all parts of the transaction to show your analysis

 

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Fixed for Floating Interest Rate Swap Counter Party Bank A (AAA) Counter Party Company B: (BBB) ===== Fixed 5 yr Rate 4.45% 5.62% Floating Rate 4.75% SOFR6 6.12% SOFR6+.50% Fixed for Floating Interest Rate Swap Counter Party Bank A (AAA) Counter Party Company B: (BBB) ===== Fixed 5 yr Rate 4.45% 5.62% Floating Rate 4.75% SOFR6 6.12% SOFR6+.50%

Answer rating: 100% (QA)

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