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Companies A and B have been offered the following rates per annum on a $ 2 0 million five - year loan: Company A requires

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 Joan. Design
a swap that will net a bank, acting as intermediary, 0.1% per annum and that will appear
equally attractive to both companies.
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