Company A can borrow fixed at 8.30% per annum and floating at BBSW +0.50% pa , and company B can borrow fixed at 10.70% per annum and floating at BBSW + 1.70% per annum. Assuming A wants floating and B wants fixed, arrange a swap where both parties benefit equally. 

 Show the cashflows for each firm.

Answer rating: 100% (QA)

In an interest rate swap two parties agree to exchange interest rate cash flows over a specified per... View the full answer