A-Star Holidays (AH) and B-Star Boats (BB) each need $4 million in funds and are quoted the following rates in the fixed and floating markets. If AH accepts the fixed-rate funds and BB the floating-rate funds, structure a swap where they both benefit equally. Show your calculations. (Total 15 marks)

AH fixed: 7.3 per cent; floating: BBSW + 2 per cent;

BB fixed: 8.3 per cent; floating: BBSW + 2.4 per cent.

A. Provide details of the swap you have structured in a table. Include amounts each pays the market and the other, amounts received from the other and the net result. (10 marks)