Company A Company B Fixed Rate 7.00% Fixed Rate 8.25% Float (LIBOR +) 0.75% Float (LIBOR...

 

Transcribed Image Text:

Company A Company B Fixed Rate 7.00% Fixed Rate 8.25% Float (LIBOR +) 0.75% Float (LIBOR +) 1.50% IR View: Low IR View High Choose: Fixed Choose: Float Cash Flow (use negative for Exp.) Cash Flow (use negative for Exp.) Pay Pay Pay Pay Receive Receive Swap Rate Pay Swap Rate a Net Pay Net Pay Unhedged b Benefits (Savings) Unhedged Savings SWAP AGREEMENT - TERMS 100,000,000 Notional Amount Swap Rate: Years 6.50% 5 Company A Company B Fixed Rate 7.00% Fixed Rate 8.25% Float (LIBOR +) 0.75% Float (LIBOR +) 1.50% IR View: Low IR View High Choose: Fixed Choose: Float Cash Flow (use negative for Exp.) Cash Flow (use negative for Exp.) Pay Pay Pay Pay Receive Receive Swap Rate Pay Swap Rate a Net Pay Net Pay Unhedged b Benefits (Savings) Unhedged Savings SWAP AGREEMENT - TERMS 100,000,000 Notional Amount Swap Rate: Years 6.50% 5

Answer rating: 100% (QA)

Here are the key details of the swap agreement Company A Fixed rate debt 700 IR view Low expect r... View the full answer