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2. General Motors is more credit worthy because it has a more favorable rate in both currencies A swap dealer will note that the spreads

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2. General Motors is more credit worthy because it has a more favorable rate in both currencies A swap dealer will note that the spreads between the two interest rates are not identical. Create an interest rate swap that benefits both GM and Qantas. GM will borrow in Australian dollars and Qantas will borrow in US dollars. Five Year Five Year US Australian Dollar Interest Rate Interest Rate 5.00% 12.60% 7.00% 13.00% General Motors Qantas Airways

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