Question: Instead of using gap analysis, Spring Company could use an interest-rate swap. The following data is available for Spring Company and a potential swap party

Instead of using gap analysis, Spring Company could use an interest-rate

Instead of using gap analysis, Spring Company could use an interest-rate swap. The following data is available for Spring Company and a potential swap party (SP) who is willing to take on floating-rate financing. Required: Determine whether it is possible for Spring Company and SP to engage in a swap. Calculate possible savings for each company (based on \% of savings) SP will take 2/3 of total savings on swap agreement

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