11. [4] Explain why a bank is subject to credit risk when it enters into two offsetting swap contracts. Companies A and B have been offered the following rates per annum on a Rs. 10 million loan for 5 years: Fixed rate Floating rate MIBOR+0.1% Company A Company B 12.0% 14.5% MIBOR+0.9% [6] Company A requires a floating rate loan; Company B requires a fixed rate loan. Design a swap that will net a bank, acting as intermediary, 0.1% per annum and that will appear equally attractive to both companies