b. Company Company A B Credit Rating A B Fix Rate Floating Rate 8% Libor +1.4 5% Libor +0.8 Company B want to borrow floating, while company A want to borrow fix 1. Why do we call "Libor +1.4" a floating rate? 2. Why a company B want to borrow floating 3. Which company has an absolute Advantage- in which market this happen? 4. Which company has a relative Advantage- in which market? 5. Create a swap that benefit both companies CA