Question: Fixed Rate Floating Rate Company A 6.50% LIBOR + 1.75% Company B 7.75% LIBOR + 2.25% Assuming comparitive advantage and the agreed upon rate of

	Fixed Rate	Floating Rate
Company A	6.50%	LIBOR + 1.75%
Company B	7.75%	LIBOR + 2.25%

Assuming comparitive advantage and the agreed upon rate of 7.30% after entering into an interest rate swap, determine the cost of financing for Company A and Company B. Who are the main users of interest swaps and currency swaps?

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