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1. Companies QQQ and RRR have been offered the following borrowing rates per annum on a $5 million 10 -year loans: Company Fixed Rate Floating
1. Companies QQQ and RRR have been offered the following borrowing rates per annum on a $5 million 10 -year loans: Company Fixed Rate Floating Rate Company QQQ requires a floating rate loan; company RRR requires a fixed rate loan. Design a swap that will net a bank, acting as intermediary, 0.10\% (10 bps) per annum and that will appear equally attractive to QQQ and RRR. Determine if there is a gain from a swap and the total amount of the potential gain
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