1. question :

Firm A can borrow at 4 25% in the fixed-rate market or at LIBOR+1.25% in the floating-rate market and wants floating rate payments. Firm B can borrow at 5.50% in the fixed-rate market or at LIBOR +1.75% in the Nosling-rale market and wants fixed-rate payments. You want to design a swap agreement between the two fims that niets your brokerage firm a net spread of 0.25% and lead to an equally desirable improvement in the rates that apply to cach Sim Illustrate the swap payments and net cash flows for all the three parties involved

1. Fim A can borrow at 4 25% in the fixed-rate market or at LIBOR+1.25% in the floating-rate market and wants floating rate payments. Firm B can borrow at 5.50% in the fixed-rate market or at LIBOR +1.75% in the Nosling-rale market and wants fixed-rate payments. You want to design a swap agreement between the two fims that niets your brokerage firm a net spread of 0.25% and lead to an equally desirable improvement in the rates that apply to cach Sim Illustrate the swap payments and net cash flows for all the three parties involved 2. It is Jan 19, 2021 and the EURUSD rate is $110. A fim has two more years remu swap with semiannual payments at June and December-ends. The firm har semiannually on a sil million principal and receives 4% (APR) principal. The continuously compounded annual ||1 the swap payment dates are given below Term Sum 1. Fim A can borrow at 4 25% in the fixed-rate market or at LIBOR+1.25% in the floating-rate market and wants floating rate payments. Firm B can borrow at 5.50% in the fixed-rate market or at LIBOR +1.75% in the Nosling-rale market and wants fixed-rate payments. You want to design a swap agreement between the two fims that niets your brokerage firm a net spread of 0.25% and lead to an equally desirable improvement in the rates that apply to cach Sim Illustrate the swap payments and net cash flows for all the three parties involved 2. It is Jan 19, 2021 and the EURUSD rate is $110. A fim has two more years remu swap with semiannual payments at June and December-ends. The firm har semiannually on a sil million principal and receives 4% (APR) principal. The continuously compounded annual ||1 the swap payment dates are given below Term Sum