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A and B can borrow for a 5 - yrear term at the following rates: a . Calculate QSD b . Develop an interest rate
A and can borrow for a yrear term at the following rates:
a Calculate QSD
b Develop an interest rate swap in which both A and B have equal cost savings in their borrowing costs. Assume A desires floatingrate debt and desires fixedrate debt. No swap bank is involved in this transaction.
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