(a) Suppose the risk-free spot rates are as follows Calculate forward interest rates for the second, third, fourth, and fifth years with (i) annual compounding and (ii) continuous compounding, respectively. ( 8 ) (b) Companies A and B have been offered the following rates per annum on a $20 million five-year loan: Company A requires a floating-rate loan; Company B requires a fixed-rate loan. Design a swap that will net a bank, acting as intermediary, 0.1% per annum and that will appear equally attractive to both companies. (6') (a) Suppose the risk-free spot rates are as follows Calculate forward interest rates for the second, third, fourth, and fifth years with (i) annual compounding and (ii) continuous compounding, respectively. ( 8 ) (b) Companies A and B have been offered the following rates per annum on a $20 million five-year loan: Company A requires a floating-rate loan; Company B requires a fixed-rate loan. Design a swap that will net a bank, acting as intermediary, 0.1% per annum and that will appear equally attractive to both companies. (6')