3 (a) Briefly explain overnight ndex swap (OIS) What do we mean by long and short OIS? a. Company A and B can borrow at the following fixed and foating rates per annum Fixed rate Company Floating rate WIBOR = 50 bos MBOR - 150 bps At present, Company A has an outstanng loan at fixed rate, and it intends to swap its liability from fired to floating rate. Similarly, Company B has an outstanding loan in foating rate, and it wants to swap its liability from floating to fixed rate. Both of the approached a swap dealer separately. Design a swap deal that will be equally attractive to Company A and Company B and provide swap dealer 20 basis points. Show the swap deal in a diagram and calculate net interest costs to both the companies. (8 + 8 = 9 Narks)