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8. 20 points) Suppose Company A and Company B want to do an interest rate swap Company A wishes to take out a wishes to

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8. 20 points) Suppose Company A and Company B want to do an interest rate swap Company A wishes to take out a wishes to take out a floating rate loan with interest rate 7%, while Company B can take out a fixed rate loan with interest rate 6.0% or a floating rate loan at LIBOR 0.2%. Design a swap that will net bank, acting as intermediary, 0.2% per annum and that will appear equally attractive to both companies fixed rate loan, while Company B rate loan. Company A can take out a fixed floating rate loan at LIBOR+0.5%, or a a

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