Question: How much does each company save by engaging in interest rate swaps if we assume each company shares the benefits evenly with their counterparty. begin{tabular}{|l|l|l|}

 How much does each company save by engaging in interest rate

How much does each company save by engaging in interest rate swaps if we assume each company shares the benefits evenly with their counterparty.

\begin{tabular}{|l|l|l|} \hline & Company A (Wants Fixed) & Company B (Wants Float) \\ \hline Fixed & 8% & 7% \\ \hline Float & Prime +4% & Prime +5% \\ \hline Amount & $1,000,000 & $500,000 \\ \hline \end{tabular}

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