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7 . 9 . Companies x and Y have been offered the following rates per annum on a $ 5 million 1 0 - year

7.9. Companies x and Y have been offered the following rates per annum on a $5 million
10-year investment:
Company x requires a fixed-rate investment; company Y requires a floating-rate invest-
ment. Design a swap that will net a bank, acting as intermediary, 0.2% per annum and
will appear equally attractive to x and Y.
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