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Example Companies X and Y have been offered the following rates per annum on a $5 million 10-year investment: Fixed Rate
Posted: Tue Nov 23, 2021 8:57 am
by answerhappygod
- Example Companies X And Y Have Been Offered The Following Rates Per Annum On A 5 Million 10 Year Investment Fixed Rate 1 (40.31 KiB) Viewed 128 times
Example Companies X and Y have been offered the following rates per annum on a $5 million 10-year investment: Fixed Rate Floating Rate 8.096 LIBOR
Company X
Company Y 8.896 LIBOR
Company X requires a fixed-rate investment;
company Y requires a floating-rate investment. Design a swap that will net a bank, acting as intermediary, 0.2% per annum and will appear equally attractive to X and Y.