Case Study2 FSv 4040 Weter 2017-2018,Professor Wilacha Due Thurday, February 15 2018-Wor Paragragh Styles Problem 1 - Company A, a British manufacturer, wishes to borrow U.S. dollars at a fixed rate of interest. Company B, a U.S. multinational, wishes to borrow sterling at a fixed rate of interest. They have been quoted the following rates per annum (adjusted for dijfferential tax effects) Sterling 11.0% 10.6% US Dollars 70% 6.2% Company A Company B Design a swap that will net a bank, acting as intermediary, 10 basis points per annum and that will produce a gain of 15 basis points per annum for each of the two companies