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(3 marks) Company X wants to borrow at fixed rate; company Y wants to borrow at floating rate. Design a direct swap between companies X
(3 marks) Company X wants to borrow at fixed rate; company Y wants to borrow at floating rate. Design a direct swap between companies X and Y that will appear equally attractive for both companies. Select one: O A. Company X borrows with the fixed rate of 3.9% and lends at variable rate of Libor+0.4% for the next 3 years O B. Company X borrows with the fixed rate of 3.0% and lends at variable rate of Libor+0.5% for the next 3 years O C. Company X borrows with the variable rate of Libor and lends at fixed rate of 3.5% for the next 3 years O D. Company X borrows with the fixed rate of 3.1% and lends at variable rate of Libor for the next 3 years
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