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2. Company AAA wants to borrow in floating rate and Company BBB wants to borrow in fixed rate. According to the following quotations, the swap
2. Company AAA wants to borrow in floating rate and Company BBB wants to borrow in fixed rate. According to the following quotations, the swap bank charges 0.1% for commission fee. Please design the swap contract for AAA, BBB and swap bank. Fixed Floating AAA 7.00% LIBOR+0.05% BBB 8. 50% LIBOR+0.85% Bank Charge: 0.1%
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