Question
Companies A and B have the following borrowing opportunities. Company A 5% Fixed LIBOR +0.1% Floating Company B 6.4% Fixed LIBOR +0.6% Floating Company A
Companies A and B have the following borrowing opportunities.
| Company A |
| 5% Fixed |
| LIBOR +0.1% Floating |
| Company B |
| 6.4% Fixed |
| LIBOR +0.6% Floating |
Company A wants a floating loan, Company B wants a fixed loan. Design a swap that a bank intermediary could net 0.1% from in profit that would be equally attractive to both companies. Show and explain your calculations.
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Bitcoin From Theory To Practice
Authors: Alessio Barnini ,Alessandro Aglietti ,Nathalie Jeanne Schwitter ,Stefania Pizzichi ,Caterina Bonistalli
1st Edition
979-8601742344
