7".[4 points] Company A, a French manufacturer, wishes to borrow U.s. dollars at a fixed rate of interest for one year. Company B, a U.S, multinational, whishes to borrow euro at a fixed rate of interest for one year. They have been quoted the following rates per annum (adjusted for differential tax effects) Com Company A Company B Euro 8.6% 9% U.S. Dollar 5.0% 4.2% a. Design a swap that : (i) will net a bank acting asintermediary,15% ofQSD(quality spread differential) per annum in euro and 15% of the QDs in the US. dollars, and (ii) will generate a gain of 35% of QSD per annum for A and 35% of QSD for company B (3 Points) $4.2 % Bank It.4.usales.53% 4.6% CoA 4.55 Co. B 4.53 % e notional value of swap is $145 millions and 100 millions at the initial spot ($1.45 sol 1 . Calculate gains (losses) for the intermediary bank if the exchange rate of So exchange rte wilbe S, $1.90 one year from now. Explicitly show Bank's gains or losses in each currency after one year. Finance 463: Department 7".[4 points] Company A, a French manufacturer, wishes to borrow U.s. dollars at a fixed rate of interest for one year. Company B, a U.S, multinational, whishes to borrow euro at a fixed rate of interest for one year. They have been quoted the following rates per annum (adjusted for differential tax effects) Com Company A Company B Euro 8.6% 9% U.S. Dollar 5.0% 4.2% a. Design a swap that : (i) will net a bank acting asintermediary,15% ofQSD(quality spread differential) per annum in euro and 15% of the QDs in the US. dollars, and (ii) will generate a gain of 35% of QSD per annum for A and 35% of QSD for company B (3 Points) $4.2 % Bank It.4.usales.53% 4.6% CoA 4.55 Co. B 4.53 % e notional value of swap is $145 millions and 100 millions at the initial spot ($1.45 sol 1 . Calculate gains (losses) for the intermediary bank if the exchange rate of So exchange rte wilbe S, $1.90 one year from now. Explicitly show Bank's gains or losses in each currency after one year. Finance 463: Department