Question: Fixed Floating Company A 9.0% LIBOR + 0.3% (A wants Floating.) Company B 10.2% LIBOR + 1.0% (B wants Fixed.) A. (1 point) What is

Fixed Floating Company A 9.0% LIBOR + 0.3% (A wants Floating.) Company B 10.2% LIBOR + 1.0% (B wants Fixed.) A. (1 point) What is the margin that can be captured by an interest rate SWAP? B. (3 points) Design an interest rate SWAP that pays the bank 10 basis points, and splits the rest of the margin between companies A and B.

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