Question: Demonstrate, numerically and by using diagrams, how a 'plain vanilla' interest rate swap is constructed to exchange fixed for floating payments. Explain the importance of

Demonstrate, numerically and by using diagrams, how a 'plain vanilla' interest

Demonstrate, numerically and by using diagrams, how a 'plain vanilla' interest rate swap is constructed to exchange fixed for floating payments. Explain the importance of the financial intermediary in the transaction and discuss the comparative advantage argument for the popularity of swaps

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