Question 4 Part A (5 marks) Companies AAA and BBB can borrow fixed rate debts or floating rate debts at the following interest rates per annum. Fixed rate Floating rate AAA 6% BBSW BBB 16.6% BBSW i) Determine which company has a comparative advantage in the floating rate debt market. (2 marks) ii) Company AAA wishes to borrow at a floating rate of interest and Company B wishes to borrow at a fixed rate of interest. Design a swap that net a bank, acting as intermediary, 0.2% per annum and will appear equally attractive to AAA and BBB. (3 marks) Part B (4 marks)