Question
Companies A and B have been offered the following rates per annum on a $10 million 3-year loan: Fixed rate Floating rate Company A 6.0%
- Companies A and B have been offered the following rates per annum on a $10 million 3-year loan:
|
| Fixed rate | Floating rate |
| Company A | 6.0% | SOFR + 0.1% |
| Company B | 7.2% | SOFR + 0.5% |
Company A requires a floating rate loan, company B requires a fixed rate loan. Design a swap that will net the intermediary 0.2% per annum and that will appear equally attractive to both companies.
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Forex This Book Includes Forex Beginners Forex
Authors: Jordon Sykes
1st Edition
154063180X, 978-1540631800
