Question: Consider the borrowing rates for Parties A and B. A wants to finance a $100,000,000 project at a fixed rate. Bwants to finance a $100,000,000

Consider the borrowing rates for Parties A and B. A wants

Consider the borrowing rates for Parties A and B. A wants to finance a $100,000,000 project at a fixed rate. Bwants to finance a $100,000,000 project at a floating rate. Both firms want the same maturity, 5 years. Firm Fixed Rate Floating $10.3% Prime+ 1% B $8.9% Prime+ 1/2% Construct a mutually beneficial interest only swap that makes money for A, B, and the swap bank in equal measure. HTML Editora B I VA - A - IX E 3 1 1 XX, DES 1 12pt Paragraph I P O words

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